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Bitcoin and stock markets boom as the US presidential election grinds on

Nicholas Say
Nicholas Say

Prices continue to ramp higher in Bitcoin and the bullish momentum has seems to have dragged the stock market up as well. The S&P 500 was able to breach 3,520 points, a gain of more than 2% while the Nasdaq has risen by more than 2%, hitting the 12,000 level. Meanwhile, the DJIA has also increased by 2%, to 28,390 points. A positive trend has covered the market with similar price rises. As for Bitcoin, the cryptocurrency just set its new record of 2020, surpassing the three-year high of $15,312 within 24 hours and showing the signs of a stable bull run.

Why it matters: Given the fact that both US presidential candidates are claiming to have won the election, the rise in US stocks may be premature. There is still a long road ahead before there is a new US president, and the process is likely to be decided in the courts. Whether the rise in stocks represents positive economic sentiment, or just a whole lot of EZ money from the central bank flowing into an overheated asset class is impossible to know. Bitcoin and gold have a far better outlook than equities, although most assets are likely to rise in price in the near-term.