Fueled by the uncertainty surrounding the US presidential election outcome, the cryptocurrency market is once again testing multi-month highs. Bitcoin is trading above $14,000.
Bitcoin keeps trying to gain a foothold above the $14,000 mark. Earlier, bitcoin approached this mark on October 31, but was never able to overcome it and corrected to $13,500 within a day. Currently, against the backdrop of the presidential elections in the United States and an alarming vote count, which shows that both Donald Trump and Joe Biden have a chance to occupy the White House, bitcoin rose in price again and exceeded $14,000, and its capitalization approached $260 billion. The bitcoin dominance index climbed to 64.3%.
Researchers from the CryptoQuant team wrote about the possible stimulating effect of the US presidential elections on November 2. They predicted that bitcoin volatility will peak within the next 24 hours. However, they allowed both scenarios, either a jump up or a pullback down. The chances of these two scenarios, in their opinion, were equal. They based their forecast on the study of cryptocurrency derivatives trading statistics:
“The BTC estimated leverage ratio on derivative exchanges is increasing ahead of the Elections2020. It might cause high volatility on BTC price due to cascade liquidations."
But it will be difficult for bitcoin to stay above $14,000 in the short term, analyst Michael van de Poppe wrote. According to him, $14,000 is “a heavy bottleneck". And he was "not expecting a clearcut breaker, expecting some further corrections."
Mike McGlone, senior commodities strategist at Bloomberg Intelligence, suggested that in 2021 bitcoin will face a "parabolic" rise.
"New highs are a next potential iteration and may be only a matter of time unless something we don't foresee trips up the trend of greater adoption and demand vs. limited supply."