On the day of the US election, Bitcoin rose 2% in half an hour. Why?

According to Bitpush data, on Tuesday, the day of the US election, Bitcoin, the largest cryptocurrency by market value, rose 2% in 30 minutes.

The rise in Bitcoin prices was driven by a number of factors, one of which was the strong performance of U.S. stocks on Tuesday.

After the stock market opened in the morning of Tuesday local time in the United States, the Dow Jones Index had soared 600 points as of press time. Due to the increasing correlation between the stock market and the crypto market since March this year, the price of Bitcoin has also risen to around $13,700 in a short period of time.

The US election is also an important factor driving the rise in Bitcoin prices. In fact, no matter whether Trump or Biden is elected, it will be beneficial to Bitcoin in the short term.

Tyler Winklevoss, CEO of crypto trading firm Gemini, tweeted that “there is bipartisan support for the Fed’s money printing policies, so no matter who wins the election, the only real, long-term winner will be Bitcoin.”

Tom Lee, an analyst from Fundstrat Global Advisors, believes that if Biden wins, the stock market could rise by 10%. In this case, risk assets could rise, ultimately benefiting Bitcoin. However, if Trump wins, the stock market could see a bigger rebound, with gains of 15% to 17%.

Bitcoin outflow data from the crypto market also reflects the current sentiment of crypto investors to some extent.

Data from crypto analytics firm CryptoQuant shows that Bitcoin outflows from crypto exchanges have just recorded their largest increase this year, reaching 30,000 Bitcoins.

When traders want to sell their Bitcoin, they deposit it into exchanges. Therefore, when capital flows out of exchanges, it means that traders, crypto whales, and individual investors intend to hold Bitcoin for the long term. This is good news for the crypto asset.

Image source: pixabay

AuthorLiang Che

This article comes from Bitpush.News. Reprinting must indicate the source.