Bitcoin (BTC) starts a new week and month in dollars only from the highest monthly end in history – what next?

Cointelegraph looks at five price factors that could affect Bitcoin / USD when the United States goes to the polls, and the Coronavirus is causing new restrictions across Europe.

Election day for Trump versus Biden is coming
A geopolitical event was planned this week that traditionally disrupted the markets: the US presidential election.

As the Coronavirus disrupts and limits the daily lives of many American citizens, markets will closely follow the results, looking for clues about the future president’s policies.

The consequences are not just social. The virus has accompanied economic innovations, forcing companies to leave fast-growing money in exchange for bitcoins.

According to Cointelegraph, analysts believe that no matter who wins, the result will be a boon for safe havens like gold. Although Bitcoin has generally become less tied to the macroeconomic markets, it may continue to respond to changes in the US dollar.

On Monday, the US Dollar Currency Index (DXY), the index in which the Bitcoin / USD pair showed an inverse correlation, extended its weekly gains, rising above 94.

Two-month chart of the US dollar currency index. Source: TradingView
“Asian stocks are gathering on optimistic production activity in China at the start of a crucial week spanning the US election and the Federal Reserve meeting, events that could set the tone for the rest of 2020.”

Zshaepitz noted over the weekend that bitcoin was growing in line with the size of negative-yielding debt worldwide. Negative-yielding global bonds, which the lender literally pays the borrower, fell from $ 17 trillion to $ 12 trillion by the end of 2019, and will rise again this year.

“Negative returns are beneficial for Bitcoin, which in itself does not generate interest,” he explained.

Europe welcomes the new financial pressures
Outside of the United States, markets in Europe were looking bleak as coronavirus restrictions returned across the continent.

And based on fresh warnings about shrinking economic activity due to these measures, markets have begun to ignore even optimistic signals in favor of minimizing the potential consequences of the elections.

Zebitz noted that German stocks lost $ 4.1 trillion last week, the highest level since the March crash.

It is now time for Bitcoin advocates to buy as the European Central Bank (ECB) has confirmed that there are more incentives and more money printing.

On the topic of Germany’s new isolation, popular MMCrypto dealer urged Twitter followers to reduce the amount of paper money.

“The crazy news is that the companies that are closing will get up to 75% of the proceeds in the form of new money,” the trader confirmed.

Small bullish futures slots open and close
By focusing on bitcoin-related price drivers, this weekend’s move opened another so-called “gap” in the futures markets.

Holes form when the end of the trading week differs from the start of the following week. Historically, BTC / USD has moved towards renegotiating the remaining levels before the weekend, regardless of whether it is above or below the spot rate on Monday.

As market analyst Zach Foyle notes, there have been four small holes in the CME Group’s bitcoin futures market – one at the end of each week for the past four weeks.

CME Bitcoin Futures gap for the fourth week in a row. “It’s very optimistic,” Foyle commented, as a subsequent downtrend during Monday’s trading closed the gap in the low range of $ 13,700.

As reported by Cointelegraph, it is only a small $ 16,000 gap that remains higher on the historical bitcoin price chart, while a gap below $ 9,600 failed to bridge the last time Bitcoin fell briefly below $ 10,000.

The annotated chart of Bitcoin futures shows the recent gaps. Source: Zach Foyle / Twitter
Monthly institution closing floats
On the institutional side, analysts remain optimistic at the end of the month for Bitcoin, despite the fact that the largest cryptocurrency has almost reached a record high.

As Cointelegraph reported, BTC / USD closed in October at only dollars from the highest in the month.

Source: CoinTelegraph