Best regards, colleagues at Hive!
For some, the upward trend that is being enjoyed in the Bitcoin market should not be a surprise, however, we must perhaps have a more calculating eye than normal, by this I mean, that, the reason from the point of view of Fundamental analysis may unravel a new economic paradigm that directly intertwines Bitcoin's recent moves with the future US presidency.
All this can be valued from a universal study of the graphs of Bitcoin with respect to the news reality, in addition to the factor covid-19 as an exceptional event for investment in economies intertwined with cryptocurrencies and mining.
Start of the uptrend
We can determine that the graph began to collect positive volume from March 10, when the coverage of the future contracts of Bitcoin had recently been extended.
It should be noted that at this time we are evaluating the experience of a symmetric bullish triangle, which carries the premise of maintaining the trend until there is a break, then the confirmation of the end of the trend and its new direction or fall would be expected.
However, the origin of the trend has many meanings that I will catalog specifically
1. Presidential elections in USA:
The political confrontation between the two most popular sides of the United States joining their candidates has been one of the biggest pieces in the globalized chess of Bitcoin, then, they will ask themselves, how can a presidential election affect the Bitcoin company? The answer is very simple, but it takes time to explain, first it is necessary to understand the positions of both candidates, the great advantage of Biden over Trump and the future that constantly breaks the door.
We will stop on September 29, the date on which the scandalous debate between Biden and Trump was fought, with the consequences of direct investment in Bitcoin as a refuge for the uncertainty of the dollar in the market. It is important to note that the trend did not start on September 29, but the expectation of growth and psychological investment was born.
This has happened in different markets, we are not talking about any country and simple elections, but rather the country that is best valued in America for its incredible development, that is, it does affect the international spectrum and the stock markets.
2. Trump's rejection of Bitcoin, and Biden's opportunity with the crypto economy
Since the beginning of the Trump administration, he has never hesitated to show his apathy with the subject of Bitcoin, the global cryptocurrency market and its practical use in some institutions or technologies based on the Blockchain. However, Biden is different, he has come up with a promise of a more inclusive, flexible and jovial campaign, so it will not be entirely strange that the crypto economies begin to take new booms thanks to the election and victory of the candidate for the White House.
3. The potential of Bitcoin to protect or safeguard assets and generate passive income or savings
Throughout the commercial life of Bitcoin it has been projected as one of the strategies with the highest profitability at an economic level, counting on gains from 20% per year to 35% weighting, the issue affects the entries, exits and the moment we freeze; the corporate and business groups of the world know this promise of the market and come together as in past years to create the famous "wave" that allows the economy to move in favor of price, to later freeze or leave receiving good profits.
Postscript: This does not mean that I am absolutely right and that my postulates are 100% accurate, this article was written as a theoretical hypothesis that exemplifies the upward trend and its implications, in addition to showing a perspective on three elements of marketing in different temporalities of cryptocurrencies
We're still yet to see how crypto friendly a Biden administration actually is.
He is another old man who doesn't understand tech, so who he appoints to key positions will be interesting.
Also, your content is great. Instead of just tagging the LeoFinance community, you should come and post from the leofinance.io front-end. This way you will receive an extra 10% of your author rewards in LEO.
Hopefully see you around :)
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