Despite the stock market's plunge before the US presidential election, the Bitcoin market is turning bullish during the election season. As voting day begins, Bitcoin prices have increased by about 5%, compared to the previous week. Many Americans increasingly feel uncertain about the country's future, which appears to be backing Bitcoin and gold prices. Controversial campaigns and candidates have led to a climate of fear. Bitcoin seems to be setting up for a rally no matter whether Trump or Biden wins the election.
Why it matters: Bitcoin initially lagged gold over the summer, but now it appears to be catching up to the yellow metal. There is little doubt that Bitcoin prices will rise over the medium term, and cement a position as a global reserve asset. Nations are beginning to build up Bitcoin reserves, which is extremely positive for digital assets as a whole. There is likely to be continuing civil unrest in the USA, and the National Guard has been deployed ahead of the election. This isn't good for economic activity, and may lead to further money creation by the central bank. As all the money is spent into the global economy, there will be another reason for Bitcoin prices to remain on the rise.
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