The recent market crash due to the impact of the COVID-19 pandemic did not spare bitcoin and the rest of the cryptocurrency market. However, this could have been an opportunity for Bitcoin as its adoption has accelerated making it an uncorrelated asset.
Experts bullish about bitcoin ahead of 2020 elections
Most experts such as the Founder of Fundstrat, Tom Lee had earmarked this year to be bullish for Bitcoin. Lee stated during the Blockchain Economy 2020 that bitcoin could hit $30,000 in 2020. The third halving event has brought bitcoin on track and the crypto looks bullish currently but the upcoming US elections will impact the coin.
According to Lee, bitcoin was the best performing asset in 2019 and it beat the S&P 500’s 25-year runs as the best performing asset. During the 2016 US election, following President Donald Trump’s ascendancy bitcoin hit $950 on speculation that the Fed will increase dollar interest rates. At the same time, the cryptocurrency community expects that Trump who was a businessman could endorse bitcoin.
Current conditions don’t favor bullish argument on Bitcoin
Among the reasons why Lee thinks bitcoin will be bullish this year is that people will be focused on the election and there will be less pressure on bitcoin. although the prediction seems logical it may be null and void due to the current state in the US because of COVID-19 restrictions, fiscal and monetary policies as well as nationwide protests and unrest.
In April national debt had hit $24.6 trillion and by June it stood around $55.9 trillion and some of the small businesses might not recover and have shut down permanently. These factors are likely to affect the price movement of Bitcoin since most cryptocurrency adopters are in the US. In 2019 a survey indicated that there are over 36.5 million cryptocurrency investors in the US.
Worse still, the Trump administration’s stand on cryptocurrency doesn’t seem favorable. Last year the president stated that he was not a cryptocurrency fan because it is not money and its value is highly volatile.
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