Bitcoin has hit a fresh high of the year. At $14,492, it seems like there is no stopping Bitcoin’s strong uptrend. It is important to note that the latest rally comes in the wake of growing uncertainty as Joe Biden nears the victory threshold despite the race being a close call. Despite a slight retraction as the day followed investors have flocked to, what some call it, the risk asset.
With the latest surge, Bitcoin’s market value jumped to a 33-month high. But will the bullish sentiment halt here? Many in the community have opined that the world’s largest cryptocurrency would potentially skyrocket to previously established ATH of nearly $20,000.
#bitcoin has now crushed resistance, not a lot to stop us from getting to $20,000!
— Lark Davis (@TheCryptoLark) November 5, 2020
It was back on the 10th of January 2018, when Bitcoin was trading close to this level. The difference between the previous high and the current phase is the development activity on the network which has doubled since then. This could be marked as a bullish indicator suggesting that more market participants were now involved in the network than there was nearly three years back.
Bitcoin’s price had previously failed to react immediately after the 2016 US election as it climbed a scant 1.8% in the 24-hour trading period. It was only roughly a year later that the cryptocurrency jumped formed its peak.
Bitcoin’s Development Activity Soars
Biden and Bitcoin
The Trump-Biden conundrum has prompted uncertainty and while the traditional financial markets are not a big fan of it Bitcoin, however, does not seem to mind it as much. Why is the cryptocurrency community leaned towards the Democratic presidential candidate?
It is important to note that US President Donald Trump is not a big fan of Bitcoin and the cryptocurrency market, a stance which he made quite clear when he stated “Bitcoin is based on thin air”. A change of heart at this point does not seem very likely.
Unlike Trump, Biden has not made any comments about the industry. But after Biden’s Twitter hack this year which offered to double any Bitcoin amount sent to the specified account within 30 minutes, he went on to claim that while he did not have Bitcoin, but if people wanted to chip in, they could. Interestingly, this happens to be the only Bitcoin-related tweet by Biden.
I don’t have Bitcoin, and I’ll never ask you to send me any.
But if you want to chip in to help make Donald Trump a one-term President, you can do that here: https://t.co/8XtBjuU5fX
— Joe Biden (@JoeBiden) July 16, 2020
The current US Senator and former Attorney General of California, Kamala Harris is one of his cabinet picks. While the US Vice President candidate might not have publicly mentioned her position on the cryptocurrency, her team features Ryan Montoya, the former CTO of the Sacramento Kings, a familiar crypto-friendly face.
Additionally, Sam Bankman-Fried, the CEO of cryptocurrency derivatives platform FTX, had reportedly made the second-largest donation to Joe Biden’s presidential campaign by gifting his campaign a total of $5.2 million.