Bitcoin price may drop as US election nears – could benefit altcoin rally
The focus of the crypto market has suddenly shifted back to Bitcoin (BTC) after the past few months of Decentralized Finance (DeFi) market dominance. With the US election coming up, many investors may believe bitcoin prices will plunge soon. Selling pressure weighed as Bitcoin may have hit a strong resistance level at $13,800. An independent analyst noted that altcoins could benefit from Bitcoin's strength. Altcoins have significantly under performed the benchmark crypto since broad based selling began over the late summer. Demand for DeFi tokens is slowing down due to bitcoin’s uptrend. For the moment, Bitcoin is still looking strong, while most of the altcoins are having a hard time.
Why it matters: Bitcoin has been in a good position for most of 2020, and as the year comes to an end, it looks like Bitcoin's position as the 'gold' of the crypto world is coming into the forefront. It was easy to overlook major Bitcoin buys over the summer as DeFi tokens were screaming up the charts, but just like any bubble, focusing on what's hot and ignoring long term trends can lead to big losses. Bitcoin has been gaining support from larger and larger investors, and the average Bitcoin transaction has also shot up in value. As 2021 nears, keep an eye on both Bitcoin and gold, as they will likely continue to show strength.
