The rise in Bitcoin cannot be attributed to the effect of the US elections and the diatribe between Trump and Biden. It could be an indirect consequence, as Bitcoin had already prepared the bullish road in recent weeks.
In these days several hypotheses have been made about the rise of Bitcoin in contrast to what was happening with other assets. In the case of the stock indices, for example, the descent was already evident. The American index par excellence, the S&P 500, after the bullish phase of October 12th when it reached 3484 points, just below the absolute historical record of September 1st at 3539, saw the start of a downward phase that saw prices fall until the end of October. This highlighted how the existing correlation that was present with Bitcoin, which was at its highest level since mid-March, revealed a strongly diverging movement.
Bitcoin did not give any sign of a bearish threat, so much so that if we take as a reference the performance from the lows from the worst phase in the general context at the beginning of October, Bitcoin to date gains about 30%, while if we take as a reference the lows of last week on October 29th for the S&P 500, we are now at just over 5.5%.
Bitcoin, an “embarrassing” increase
Bitcoin shows a continuation of the bullish phase already underway.
If we take as reference the trend on an annual basis, YTD, Bitcoin has increased by more than 100%, doubling the quotations since January 1st, just over $7,300. Making a more direct comparison with the other assets leads to embarrassing parallels.
Gold also experienced a historic year, hitting its absolute record for the first time over $2,000 in August, at $2,074 an ounce, marking a “modest” +25%.
The comparison becomes more ruthless if we compare the performance of the S&P 500, which to date gains 6.5%.
Making a comparison, Bitcoin immediately stands out as having doubled the performance of gold 4 times and even 15 times the performance of the S&P 500.
Bitcoin won the market elections
The US election had absolutely no impact on Bitcoin, so much so that in the last 48 hours the US VIX measuring volatility yesterday showed nervousness, while Bitcoin set the stage and then in the night went even higher until it reached $14,500.
The market has already given its election result between the most performing assets of 2020 by electing Bitcoin, and these last hours can only confirm it.
If BTC continues at this pace, it will be the best asset in general for the second year in a row.
If it maintained these levels, it would perform better than it did in 2019 when it closed the year with a 95% gain.