Written by: George Prior
Bitcoin will get a “meaningful price boost” as the U.S. election goes to the wire and Americans brace for a long wait for the result, affirms the CEO of a $12bn financial advisory and fintech organisation.
The forecast from Nigel Green, chief executive and founder of deVere Group comes as the world’s largest cryptocurrency gained 4% over 24 hours, surging past $14,000, as Americans cast their vote in the most divisive presidential election in modern history.
Mr Green says: “We still don’t know who has won the keys to the White House and we probably won’t for some days to come.
“What we do know is that delays, legal challenges and a potentially explosive constitutional crisis in the world’s largest economy is likely to give Bitcoin a meaningful price boost.
“Bitcoin – already one of the year’s best-performing assets, gaining 50% in six months – could re-trace its great historic 2017 rally when it hit $20,000.”
He continues: “Financial markets loathe uncertainty and are being shaken by political upheaval, a weak economy and social unrest in the U.S.
“As a result, investors will pile into safe-haven assets, in particular those not tied to any specific country, such as Bitcoin and gold, as a shield against the turbulence.”
The deVere boss, who launched the pioneering deVere Crypto app in 2018, goes on to add: “Other key drivers of a bullish Bitcoin market are that it is a legitimate hedge against longer-term inflation concerns which have come to the fore due to stimulus packages – more of which are promised by both parties.
“These emergency measures, like the massive money-printing agenda, reduce the value of traditional currencies like the dollar.
“In addition, there are question marks hanging over other issues – including rising Covid-19 cases globally, Brexit, and U.S.-China trade tensions, that will drive retail and institutional investor interest in Bitcoin and other leading cryptocurrencies.”
Mr Green concludes: “I’m in no doubt that with the fallout of global events, including the U.S. presidential election, the trajectory of Bitcoin for the rest of 2020 is upward.”