Bitcoin Respond Bullishly to 2020 US Presidential Election, Just Like S&P 500, But Unlike 2016
The US presidential day turned out to be good for Bitcoin’s price as it jumped above $14,000 yet again.
Unlike the last time, when the BTC price fell during the 2016 election, moving in the opposite direction to the S&P 500, which went up. This time, both the equity market and BTC went up, much like we have seen throughout this year.
At the time of writing, BTC/USD has been trading just above $13,780, with $2.5 billion in trading volume.
Much the same way, gold went above $1,900 only to get back to $1,890. The USD index meanwhile oscillated between 93 and 94.
While there have been vocal calls for a blue sweep from the media, traditional market participants, and experts; it looks like this may end up being a red wave.
President Donald Trump has already announced his win while Twitter continues to hide his tweets. However, for the markets, including bitcoin and crypto, no matter who wins, they will continue to go up as more money pours in thanks to additional fiscal stimulus.
For now, Bitcoin already had its highest monthly and quarterly close in history while being on another bullish cycle. Additionally, November has been historically the best performing month for BTC, and $14k is all that is standing between the current level and the all-time high of $20,000.
Still, a few pullbacks won’t be out of the ordinary either.
“Bitcoin closed the daily out above the highest monthly close. No major rejection yet. Instead, we have left a poor high that looks like it needs to be cleaned up,” noted Cantering Clark.
Network Meanwhile is Slow
Amidst the ongoing price bullishness, as we reported, the largest network is getting clogged up following the sudden sharp decline in Bitcoin hashrate from its ATH in mid-October, to July level, due to the end of the rainy season in China.
This drop in the hashrate has the average block time jumping past 15 minutes. This led to congestion in mempool and the average cost to send Bitcoin above $13 for the first time since the 2017 bull run.
With over 123% week-over-week growth, bitcoin transaction fees averaged around $3 million per day, twice the amount of total fees recorded on the Ethereum network, reversing the trend of the last four months.
This surge in fees had the rate of transactions on the network falling as they were pending in mempool waiting for open block space, which also led people to wait than pay such hefty fees and get stuck to get the transaction confirmed.
However, the second-largest drop in bitcoin difficulty adjustment has the block time falling under the scheduled 10 minutes, but the average fee is still above $11.