History may be repeating itself as bitcoin surged over $14,000 within two hours of polling places beginning to close across several US states. The recent sharp rise in bitcoin price is probably due to the influence of the US presidential election and the open-up move of traditional financial institutions towards digital currencies. Bitcoin's "peak" over $14,000 was initially recorded in January 2018 but it fell shortly thereafter. Ballot counting is underway across the US while cryptocurrencies and stock markets remain uncertain. There has been tremendous volatility in the US futures market, and much like the US presidential election results, there isn't likely to be a clear picture for at least a week.
Why it matters: Bitcoin is clearly bucking the trend in risk assets and showing its true colors as a store of value. The US presidential election is likely going to be an ongoing social narrative, which means that uncertainty could roil the markets for the rest of 2020. Neither candidate will easily accept defeat, and given the opaque nature of the US electoral process, the decision may take far longer than markets want. Both Bitcoin and gold appear to be well placed to weather the storm, and may rise in value as the US descends into chaos. There will be more monetary intervention required from the central bank, which is also good for Bitcoin prices in the medium-term.