Bitcoin surged Wednesday towards its best level in the last three years, led by the prospects of Joe Biden winning the ongoing US presidential election.
The Democratic contender won the critical swing state of Wisconsin in the afternoon hours of the US trading session. His lead became critically important after Donald Trump logged a narrow win in other battleground states, including Texas, Florida, and Ohio.
So far, the outcome remained uncertain as other crucial states like Georgia, Michigan, and Pennsylvania continued to count votes. The latest readings showed that Mr. Biden is leading Mr. Trump by 248-211. They need at least 270 electoral votes to win the US presidency.
Biden, Bullish, Bitcoin
Meanwhile, Bitcoin traders continued to treat a leading Mr. Biden as their cue to stay bullish on the cryptocurrency. BTC/USD – throughout the voting tally period – tailed the Democrat’s performance. A lead for Mr. Trump slowed down its uptrend – and vice versa.
After Mr. Biden won Wisconsin, Bitcoin swang sharply towards $14,273. Nevertheless, the cryptocurrency quickly retreated its course, only to find short-term support near the $14,000 level.
Analysts agreed that a concise victory for Mr. Biden is bullish for Bitcoin. The candidate promised its voters that he would boost the government spending required to aid Americans through the economic aftermath of coronavirus.
That expects to put additional downward pressure on the US dollar, which, in turn, raises the prospects of higher Bitcoin bids.
But independent market analyst Michaël van de Poppe warned. He noted that the uncertainties surrounding the ongoing election’s outcome would make it difficult for Bitcoin to hold a rally above $14,000.
“Regardless of the outcome of the Presidential Election,” he added, “I’m heavily bullish on BTCand ETH long term.”
Bitcoin was trading at $14,051 at the time of this writing.