The bitcoin price has soared in the run up to the 2020 US election, adding a massive 30% through October and riding a raft of positive news to hit highs not seen since early 2018. Now, with Democratic candidate Joe Biden finding a solid lead in national polls over Donald Trump, bitcoin and other cryptocurrency owners are braced as candidates head into the last day of campaigning, with markets already on edge globally.
Last week, the Dow Jones Industrial Average closed its worst week and month since the pandemic crash in March as the Republicans and Democrats geared up for the presidential race final lap.
Bitcoin broke its long-held peg to stock markets, adding 5% over the last seven days and feeding into a tidal wave of bullish sentiment among bitcoin investors that hasn’t been felt since bitcoin’s bull run three years ago—and seems unshakeable no matter the result this week.
Bitcoin holders are backing the cryptocurrency as an emerging so-called safe haven asset, with the bitcoin price potentially increasing along with the likes of gold in times of increased uncertainty and risk.
“Markets loathe uncertainty, so in the event of a contested result, safe-haven assets will get a boost–especially non-sovereign classes such as gold and bitcoin,” said Nigel Green, the chief executive of deVere Group.
If there’s a contested election, stocks could slide as much as 20%, Bank of America economists warned last week.
“[Investors] just want to know that there’s a winner,” Jeff Dorman, chief investment officer at cryptocurrency hedge fund Arca, told Business Insider in an interview. He thinks a Biden victory would imply an unprecedented level of government spending that would be better for BTC and gold than four years of Trump.
“I would say Democrats are better for inflation hedges, but as long as there’s a clear winner at some point, everything’s going higher,” he said.
Other more radical elements of the bitcoin and cryptocurrency community also believe a Biden victory will mean bitcoin could leap higher this week.
Contrarian Max Keiser, a Wall Street veteran, long-term bitcoin advocate and host of RT’s The Keiser Report believes the bitcoin price will “bolt higher” on a Biden win, stoking unfounded fears a Biden administration will confiscate “everything.”
However, Keiser is positive in the event of a surprise Trump polling upset.
“With Trump, the U.S. has a chance at a more orderly transition to bitcoin so the price would move up more slowly,” Keiser told Cointelegraph.
No matter who goes to the White House this week, Biden or Trump, the bitcoin and cryptocurrency community think they’ve already backed the real winner.