The price of Bitcoin - the largest and most popular cryptocurrency - on Tuesday surged over 4 percent pushing it back over $14,000 on the back of positive US market and presidential election results. The digital currency in the last six months has jumped 50 percent, becoming one of the year's best performing assets.
In its article, Forbes said that bitcoin traders and investors have been nervously eyeing markets over recent days, with uncertainty on the rise after bitcoin decoupled from the stock market last week.
Most analysts believe that bitcoin will continue to run its pace this year no matter whoever takes the White House in the coming days.
Jason Deane, an analyst at Quantum Economics said to Forbes, "Early sentiment is of a Biden victory which could point to the expectation of getting a significant coronavirus stimulus passed quickly. In that scenario, bitcoin is little more than a passenger on a wave of positivity driving price discovery, rather than the fundamentals which, although strong, become a secondary consideration in that context."
Bitcoin has a fixed supply of about 21 million tokens. With the recent rally in the digital currency, investors are racing back to make profits further triggering the price to move upwards.
Cory Klippsten, chief executive officer of Swan Bitcoin said to Forbes that macro conditions are favourable and point out a major bitcoin bull market.
"There just aren't many sellers left. It feels like every time there's the slightest dip lately, it just gets bought up," Klippsten added further.
In an article by CoinTelegraph, Tom Lee of Fundstrat Global Advisors said the risk-on assets would eventually rally if Biden wins. But, if Trump wins, stocks might see even a bigger rally of 15-17 percent given that both stocks and BTC are in tandem.
(Edited by : Jomy)
First Published: IST