Bitcoin and U.S. Presidential Elections – 2016 Vs. 2020
U.S. elections usually cause a significant frenzy in general, and the field of cryptocurrency is no exception. Even if they don’t openly talk about their plans regarding this financial sector and don’t make it part of their campaign, it’s a matter the candidates certainly consider. Once elected, the new President will have on their agenda issues like the legal status of tokens, for instance. But how does the value of cryptocurrency evolve around elections?
BTC and the 2016 Elections
We won’t consider the elections in 2012 in our comparison because, at that time, the crypto field wasn’t sufficiently developed to even be considered an issue. By 2016, Bitcoin had already increased its value significantly. Since the general trust in banks and traditional investments seemed to be on a descending path, blockchain and cryptocurrencies were expected to become more important.
However, that didn’t happen. Both Hilary Clinton and Donald Trump avoided talking about this matter, despite the many attempted inquiries. It seems this subject was considered ‘too Libertarian’ and not a preferable inclusion in their campaign.
As for the crypto movements on the market, elections time in 2016 didn’t significantly impact cryptocurrency value. Bitcoin’s volatility didn’t spike, and nothing drastic happened. During the weeks before the elections, Bitcoin saw an increase in value from $600 to $740, but it was because of the USD dropping.
Are Things Different in 2020?
In general, Bitcoin and cryptocurrencies are at a whole different level than they were in 2016, for sure. While during the previous elections, Bitcoin was around $700, the 2020 battle for presidency fount the cryptocurrency around $14,000, a completely different level.
Still, that’s not the only difference between the two years. In 2020, the controversial elections took place against a too severe and volatile background, the Covid-19 pandemic. The worldwide economic and financial crisis caused many changes, and investors started looking for safe-haven options. While many see crypto as too risky, there are also many who see its volatility and independence as a strong point and Bitcoin as a smart investment.
Despite many experts saying we should expect significant changes, Bitcoin’s fluctuations were similar to those around the 2016 elections. Nothing major happened; it merely fluctuated between $13,545 and $14,223, which is not that significant from a general perspective.
As for similarities between the two elections, we saw the same avoidance attitude from both candidates when it came to blockchain technology and cryptocurrency. Again, neither party pitched a clear position in this matter, or any position, really.
Election Results and Bitcoin Previsions
Considering the general situation, the result of the 2020 U.S. presidential elections was deemed unlikely to have a negative impact on the evolution of cryptocurrencies, no matter which candidate prevailed. With Joe Biden winning, social issues will need to be handled, and the fiscal stimulus will increase the budget deficit even more. If the UDS weakens, this could be an occasion for Bitcoin to increase in value.
Even if Donald Trump had been re-elected, the tax cuts he promised during his campaign would have led to the same situation, printing more money to cover all those holes in the budget. Again, it would have been an opportunity for the crypto market. So while braced for the election week, Bitcoin was expected to overcome it stronger or at least unaffected by the political battle.
All things considered, U.S. elections are one more piece of proof that Bitcoin’s evolution is independent of many factors, including political events and stock value, at least up to a point. With the 2020 elections over and the pandemic still in full bloom, what remains to be seen is whether Bitcoin will have the same skyrocketing path as in 2016.