- How the indecisiveness of the election affected price values
- International currency values plummet while Bitcoin sets record highs
- Stimulus checks might see a decreased USD value alongside increased Bitcoin
As Americans anxiously awaited the final tally of the US presidential election this week, tensions increased across the country while coin values decreased across the globe.
- The Mexican peso fell 4% to 20.905 USD.
- Chinese yuan fell 0.8% to 6.7362 USD.
- The Australian dollar fell 0.6% to $0.7128 USD
- British pound fell 0.6% to 1.2983 USD
- Canadian dollar fell 0.65% to 1.3218 USD
- Japanese yen fell 0.65% to 105.195 USD
On top of the devaluing of international coinage, Bitcoin increased over the 24-hour span from Tuesday, Election Day, to Wednesday. This is not unheard of; the 2016 election also saw a fluctuation in bitcoin value. Economists predict that, similar to the 2016 shift, we may see larger-scale changes toward the end of polling when results become final.
The past 100 days, Bitcoin has held above the $10,000 price tag for a record time, and in just one night between Wednesday and Thursday this week, it passed the $14K barrier to reach a value of $15,300.
Strategists predict 2021 to be a “parabolic” year for Bitcoin, especially as the fate of a renewed stimulus continues to teeter alongside the developing election results. Simon Peters, a cryptoasset analyst at investment platform eToro, says: “When central banks announce extensive plans to pump money into economies, many investors in the crypto community take this as a major bitcoin buy signal… With the U.S. election gradually drawing to a close, the details of a fiscal stimulus could become clearer. Any such package could see weakening of the U.S. dollar and further increases in the bitcoin price going forward.”
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