On November 7, several major media outlets announced that Joe Biden had received enough electoral votes to become the 46th President of the United States after 4 days of rigorous vote counting in the major states on the battlefield.

As the tensions around the elections get closer to incredible closeness, analysts will take a close look at how Biden’s presidency has impacted traditional markets and bitcoin prices. There are three important factors to consider: the recent passage of a new round of economic stimulus, the strengthening of the US dollar and the possibility of a recovery in the stock market.

Economic stimulus could push bitcoin up
On the eve of the election, US President Donald Trump announced that he intends to postpone discussions on incentives until after the election. As a result, Democrats and Republicans have struggled to reach consensus on the deal.

The choice of the city indicates the prospects for the stimulus package by the end of the year. In October, Democrats in the US Congress already proposed a $ 2.2 trillion stimulus bill, but it did not receive Senate support.

The second round of stimulus could positively impact Bitcoin as it significantly eases the economic conditions in the US, it will also stimulate the US economy, thereby stimulating investors’ appetite for risky assets.

The Bitcoin concept has evolved from a risky asset to a secure port advantage and has played a role in inflation in recent months. Despite this, there are still many cases where the price of bitcoin moves in sync with the stock market, so in the absence of appetite for risky assets, the price of bitcoin continues to rise.

US dollar growth
If the Biden administration adopts the stimulus package, the US dollar will rise. The eurozone, for example, has seen a rapid demonstration of the euro following the implementation of a major stimulus proposal.

Since March, the US dollar has lagged behind reserve currencies. Hence, it helped restore gold, bitcoins, and other alternative store of value as they were valued against the dollar.

Thus, there is a possibility that a new round of incentives and increased investor confidence could initially positively impact the price of bitcoin. It’s also important to note that a stronger dollar over time could put additional pressure on Bitcoin and gold sales.

Stock markets could rise now that the elections are “over.”
Analysts also expect the US stock market to recover after the election results are confirmed.

While many analysts believe Biden’s tax and environmental policies could ultimately lead to a downturn in the stock market, there is a good chance that stocks will rise in the short term.

The stock market fell sharply in August and September when analysts warned of a controversial election. Rumors about the election results are unlikely to lead to the sale of risky assets.

Instead, fears that elections will continue without a clear winner will shake the markets.

After the race ended in 2020, there was less uncertainty in the markets and this could allow stocks to recover alongside other risky assets.

Regarding regulation, Jake Chervinsky, general counsel for Compound Finance, said Biden has not expressed a public position on cryptocurrencies. He wrote:

President-elect Biden has not said anything publicly about his views on cryptocurrencies. There really isn’t a problem at this point, big enough to get his attention. The next four years of US cryptocurrency will depend on who appoints him to key positions; We’ll know more when the transition begins. ”
While the media announced Joe Biden as the winner of the 2020 election, President Trump has yet to give up, and many expect Trump’s legal team to dispute the results and try to get a retelling across all of the struggling states.

If this happens, fear and instability can quickly return to the markets and lead to lower prices for stocks and cryptocurrencies.

Source: CoinTelegraph