Bitcoin prices have been falling back from their 2020 peak for the past six weeks but macroeconomic and political factors could drive resurgence towards the end of the year.
Since its sharp decline on the first of September, Bitcoin has found relative stability in the mid-$10k range, remaining there for the past three weeks. Investors and analysts have been looking at long term charts to ascertain whether the upcoming U.S. elections will have any effect on BTC prices.
There appear to be other factors at play also, including monetary and fiscal policies which are likely to continue regardless of whom wins the presidency in November.
Elections and Bitcoin Prices
Digital asset manager Charles Edwards has opened up the long-term chart for Bitcoin and overlaid previous U.S. election periods for the past decade. He observed that the three months prior to a U.S. election has been ‘rocky’ for Bitcoin in the past.
Bitcoin hit a price peak in mid-August this year of $12,200 and has bottomed out at just below $10,000 for the three months leading up to the election and we are not even into October yet.
The other strong connection to note here is that halving events have also correlated with elections and prices have increased dramatically in the months that followed both events. Continue Reading