HomeCryptoBitcoinThe reason why the price of bitcoin is growing

The reason why the price of bitcoin is growing

The price of bitcoin is growing today. 

Indeed, this morning it recorded the highest value in 2020, beating the previous record at the end of October. 

Only 24 hours ago, the price was around $13,500, while this morning it reached $14,500 and then temporarily stabilized at around $14,400.

The price of $14,500 was last touched in January 2018, shortly after the big speculative bubble burst in late 2017, and since then the price of bitcoin has never come close to these figures. 

But why did it grow by a thousand dollars in a day? 

Most probably this growth is linked to the outcome of the US elections. 

The day before the elections, on November 2nd, 2020, the price was around $13,500. 

On election day it rose to $13,700, while the next day, yesterday, it suffered from some volatility, first rising to $14,00 and then falling to $13,500. 

In other words, at the turn of the election, the price was basically $13,500, with some temporary peaks higher.

Uncertainty explains why the price of Bitcoin is growing

The fact is that the outcome of these elections was decidedly uncertain, particularly as soon as the polls were closed. 

At that time of uncertainty, investors probably felt insecure about investing, perhaps because they feared that the outcome of the vote might be a long road ahead. 

Admittedly, the outcome of the 2020 US elections is still relatively uncertain, and the risk of disputes probably remains high, but since yesterday financial markets seem to have been convinced of a clear victory for Joe Biden, and perhaps that possible disputes could affect this result.

Looking, for example, at yesterday’s performance of the Nasdaq index, it is clear that there was a real spike when it opened. After the constant decline in the second half of October, perhaps due to uncertainty, yesterday upon opening it seemed as if the uncertainty had suddenly dissolved. 

It should be noted that at the same time of this Nasdaq spike there was also a very similar one on the price of bitcoin, which however continued to rise due to the closing of trading on the American stock exchanges. 

The two curves are too similar to think that there could be no change, and since most likely the Nasdaq curve yesterday was influenced primarily by the outcome of the presidential election, it is fair to assume that the same thing applies to the bitcoin curve. 

Moreover, in mid-October a forecast included in a report published by Stack Funds stated that the price of bitcoin after the US elections could rise up to $15,000, analysing in particular the historical changes in the price of BTC in relation to the so-called MVRV (Market Value to Realized Value). 

There are different perspectives, but the growth of the last 24 hours seems to fit perfectly into this forecast, reinforcing the hypothesis that it is due precisely to the presumed end of uncertainty regarding the outcome of the elections

Marco Cavicchioli
Marco Cavicchioli
Born in 1975, Marco has been the first to talk about Bitcoin on YouTube in Italy. He founded ilBitcoin.news and the Facebook group" Bitcoin Italia (open and without scam) ".