US Presidential Elections could be pushing Bitcoin into a New Bull RunNovember 8, 2020
The 2020 US Presidential elections are truly an event for the history books. Of course, there are not many around the world who are surprised by this development. After all 2020 so far is definitely a year for the history books in so many ways so adding the Presidential elections to that is in some ways completely natural. The battle between Donald Trump and Joe Biden was tight enough for the numerous US states to continue counting well after that Tuesday, November 3rd.
Now, it seems that the world finally knows who won the Presidential elections. The President-elect is Joseph Biden and history was – again – made in the longest counting process that the US ever saw. But, the story of the same event, one of the most important ones in the modern US past, is still ongoing. All the while, cryptocurrencies, and their movers and shakers kept a close eye on all of the happenings regarding this momentous political process.
The end result right now is a strong move up in all major currencies, but especially bitcoin. Here for the first time in many months, the price of a single bitcoin token reached 15,000 USD. Other indicators are also confident that a new bull run is very much possible. This is major news not just for the cryptocurrency community, but for many millions of people who are presently using digital tokens. Also, the same movement in price will impact an ever-growing number of institutional investors, as well as financial technology companies like PayPal, all of whom are more invested in digital currencies than ever before.
Unfavorable Technical Indicators
There is a bitcoin rally unfolding and that is a big surprise for many. But, this time around, it has surprised even the otherwise relatively insightful technical indicators of the market. It appears that the bitcoin network and its token price are showcasing a strong determination of inventors to keep on accumulating this cryptocurrency. All of them are essentially ingrown technical indicators that are flashing red in terms of BTC being overbought. These signals are falling on deaf investors’ ears. Instead, the digital currency managed to push through its January 2018 record and looks to continue that ascent to possibly the 16,000 USD benchmark or beyond.
Presently, the cryptocurrencies are following the general pattern of the traditional markets. Stocks indexes in Europe rose by about 1 percent, while their US counterparts like the S&P 500 took about 2 percent in value. Bitcoin however is up over 8 percent, looking at just the day after the US elections. On a year-to-date level, bitcoin token is up more than 108 percent. So, it looks like no amount of negative technical indicators are putting a stop to the current price hike.
The concept of accumulation addresses represents digital wallets that have in the past received BTC transactions from at least two transfers. Neither of these transfers represents a small amount of BTC and also, the same addresses never spent any of these tokens. Instead, they have been receiving substantial amounts of BTC and appear to be designed by their owners to do just that. Lastly, they are known not to belong to any crypto entity like an esports team that deals in crypto, digital exchange, or any other similar organization or group.
They belong to investors who are holding their digital currency in expectation of a major push forwards in terms of token price. The number of accumulation addresses has been known in the crypto community for some time and is one of the factors that are relevant for predicting new bull runs. Now, these accounts reached a record high number of nearly 520,000 such addresses. In the past week alone, 3 percent more of these accounts came into being. That followed the rally BTC had which took it from 10,500 USD to 15,000 USD. Clearly, the trend with the bigger investors is to accumulate bitcoin and get prepared for the new price hike, possibly even a bull run.
Overall, in 2020, accumulation addresses are up almost 10 percent. This means that the investors are not just jumping on the HODL train because they fear that they might miss out on the latest rise in prices. On the contrary, a significant number of these have been taking on coins throughout this year. This is one of the reasons why the price has been so steadily geared towards a higher value. In that environment, even small drops in the price never materialized into anything like a bear market. Bears apparently gave up on this year as a period when the value of cryptocurrency will have one direction and that is up.
Finally, the overall number of locked BTC tokens in these accounts is presently up 20 percent year-on-year. This number currently stands at around 2,8 million BTC. No one can tell for sure when these will start selling, but it is clear that they are primed for a strong price increase. Otherwise, investors behind these accounts would have used the opportunity to sell when the price hit 14,000 USD or anything in that ballpark. All evidence points to the process of waiting for a much bigger rise in the price of bitcoin token.
Role of Elections
Oddly enough, analysts and crypto experts often cannot establish if the cryptocurrency markets favor the instability or stability of the traditional economic system. After all, the concept of crypto being the polar opposite of the traditional markets has been proven wrong time and time again. However, the direct alignment of bitcoin and anything like Wall Street is also clearly a faulty correlation as well.
That is why the role of the US election is a factor that is hard to gauge. But, despite this, there is a sense that the victory of Joe Biden heralds a new beginning not just for the United States, but the entire world. After four years of divisive local politics and unpredictable moves on the international stage, like the trade war with China, crypto as much as anything else is apparently appreciating the potential for a return to normality.