Triple threat took Bitcoin to the highest price in over two years
Three factors brought Bitcoin to its highest price since falling from all-time highs at the end of 2017.
First off is the fundamental event that is still wrapping up in the United States and that is the Presidential election. It is now pretty safe to assume That former Vice President Joe Biden will win the seat in the oval office and current President Donald Trump will not be re-elected for a second term. Although this race was a nail biter and too close to call on election night. Biden is bullish for Bitcoin because he represents a greater magnitude of aid to the millions of Americans who desperately need it. In turn, this fact, plus his bias towards better government funding for the needy and heightened corporate tax rates is hinting towards further dollar weakness. This dollar weakness is bullish for Bitcoin futures because most are traded against the U.S. dollar.
Secondly, widespread adoption was a huge factor in this rally. When Bitcoin was trading at $20,000 there wasn’t near the number of payment platforms supporting it, and there was practically zero institutional interest. The announcement that PayPal the world’s largest online payment company with nearly 350 million users will soon be allowing users to utilize their application as Bitcoin virtual wallets, meaning they can hold send and receive Bitcoin on their PayPal account. And soon in 2021 vendors will be allowed to accept Bitcoin for their online sales, of which PayPal is the payment method used in approximately 85% of online purchases. The announcement by PayPal on October 21st brought about a $1,000 rise in Bitcoin that same day.
Lastly, was the supreme technical level that BTC had taken out the same day it climbed over 8% in a single day. This level at $14,200 was both the highest trading point in 2019 and since its fall from grace. BTC started out trading yesterday Oct.5th opening at $14,160 in the CME as it broke that level that represented the final hurdle until $17,000 Bitcoin futures shot up over $1,100 or roughly 8%. The same day a Biden Presidency was seemingly ineviteble. Bull markets began running in safe-haven, stocks and yes even Bitcoin seems to be a Biden fan.