This week is very critical for Bitcoin due to US elections and announcements of lockdowns in Europe amid the new cases of COVID-19.
The US presidential election is going to happen this week that is an important geopolitical event. The results of the election will definitely pour a significant influence over cryptocurrency markets besides traditional financial markets. In the past, Trump criticized Bitcoin for high volatility that proved very shadow for Bitcoin and other cryptocurrencies.
In such critical and unpredictable times, the safe-haven assets, such as gold, will gain more exposure. Bitcoin, also known as a safe-haven asset and the best alternative to gold, can also get a strong push in an upward direction. Crypto analyst Holger Zschaepitz said,”Asia stocks climbed buoyed by upbeat China factory activity in volatile start to crucial week spanning US election & Fed meeting.”
Lockdowns due to COVID-19
In Europe, the situation is also very serious as numbers of Coronavirus are also increasing. Due to a surge of COVID-19 cases, the European countries are pondering over new lockdown policies. The United Kingdom is going for a new lockdown which may disrupt the economic activity of the country. Similarly, Germany will also impose lockdown and roll out stimulus packages for those who are suffering the most. In the previous week, Germany’s stock markets suffered a lot and lost nearly $4.1 trillion.
The fresh injections of money as a result of money printing in the European countries pump the price value of Bitcoin upward. The businesses which close due to lockdown may get “75% of their revenue in freshly printed money.”
At press time, the world’s leading digital asset is exchanging hands at $13,482 after a decrease of 1.65% over a timeframe of 24-hours. Over a weekly timeframe, the $14,000 level is a strong resistance which is hindering the path of Bitcoin’s price value. If Bitcoin bulls become successful in overcoming $14k then the next goal of the primary cryptocurrency is to achieve $20,000, the highest position so far.