Bitcoins’s Weekly Outlook As All Eyes Are on the US Election.
Talking Points:
- The European Central Bank will announce its forward guidance on Thursday. With an increase in the number of Coronavirus infections in France, Germany and other parts of Europe, the market anticipates more financial aid from the bank. If it happens, Bitcoin could see more gains against the EUR.
- The USD is likely to see fluctuations in its price movements that could influence Bitcoin’s price movements on an intraday basis. Long-term weakness in the USD is expected.
Bitcoin’s market attitude was extremely bullish last week as traders and investors assessed the influx of major firms into the digital currency market, including PayPal.
The BTC/USD price started last week with strong gains and it continued for the rest of the week trading upward. That was in spite of the uncertainty surrounding the next US fiscal stimulus and the presidential election on the 3rd of November. Bitcoin remained the best-performing safe-haven asset after finishing the week up by over 13% higher.
Another Strong Start for Bitcoin.
Opening today, BTC/USD rose by 0.5% to trade well over 13,000 USD, a psychological support level that traders believe will provide a strong support level for the next bull run.
BTC/USD Chart:
The fundamentals are currently supporting the bright technical picture. This week will be a busy one, with the US election and fiscal stimulus talks promising to impact the global market outlook, including Bitcoin.
Experts believe that Joe Biden the Democratic nominee will beat the current Republican President Donald Trump. In addition, they believe that the Democratic majority in both the Senate and House of Representatives will pave the way for a larger Coronavirus relief package of over 2 trillion USD.
A number of economists also believe the stimulus is unavoidable. So regardless of who wins the election, the market could expect to see an aid package worth at least 2 trillion USD.
Both of these scenarios will leave the USD weaker and therefore increasing the demand for other safe-havens assets both in the local and foreign markets. Bitcoin acts as one of the hedging options to investors. Therefore, the cryptocurrency’s advocates see it continuing to trade upward following the US election.
