After the news broke that Joseph Biden was officially the winner of the election, the price of the pioneer cryptocurrency plummeted. However, the cost of Bitcoin, in a few hours, recovered, which allows us to affirm that the maturity of this asset has grown exponentially.
Social media reacted cautiously at first, and in many cases it was seen as a mass sale. The latter would undoubtedly have caused a large drop in the price of the digital currency.. Despite this, the recovery movements did not take long.
Within hours of the price falling to $ 14,200, following the news of Biden’s triumph, the value of Bitcoin was touching $ 15,000 again. Thus, after some movements in both directions, the value of the most important cryptocurrency dawned at the support before Biden’s victory, $ 15,200.
Bitcoin, in a sign of maturity, recovers from yesterday’s fall
Gone seem to be the times when the price of this cryptocurrency sank before any turbulence and stayed for a long time at the bottom. The last of these winters was during 2018, when the price remained very low until the first quarter of 2019.
The maturity of Bitcoin, since then, allows it to overcome one of the stages that most terrified investors, instability. The price of the pioneer cryptocurrency still suffers from events of great importance, but the big difference is that recovery comes very quickly.
During the announcement of the World Health Organization (WHO), about the start of the pandemic, the price of Bitcoin plummeted dramatically. In fact, the adversaries of the cryptocurrency, apart from announcing the usual “end of bitcoin”, They ruled out any possibility that it could be a store of value.
It has not been long, until large investors of Wall street and traditional companies such as MicroStrategy, will use it precisely as a store of value. Bitcoin’s recovery from the March crash was so rapid that it has since performed as the best asset of 2020.
A repeating pattern
In this way, the recovery of Bitcoin makes it possible to foresee that its maturity is at another level when compared to previous years. In this sense, at that juncture, the day of the presidential elections in the United States arrived, which, as expected, was highly controversial.
However, the clear victory of Joe Biden during the counting of the electronic ballots, stopped the environment of turbulence that seemed to approach. Trump’s messages became less scary for market stability, and thus it was no longer as necessary to put funds in reserve assets.
With the official announcement yesterday, about the victory of the Democratic candidate, the price of Bitcoin, as a reserve asset, reacted negatively. In a matter of minutes, it plunged from nearly $ 15,500 to $ 14,200.
However, it didn’t take long for signs of recovery to appear. In a few hours, the value of the cryptocurrency was already at the gates of $ 15,000 again. At the time of writing, its price is above the $ 15,400 support. If you stay there, your next goal is likely to remain 16K.
The turbulence does not end
Although the maturity of Bitcoin could be the main factor in this rapid recovery, the uncertainty that remains allows us to say that the history of the elections is not over. In fact, to date, outgoing President Donald Trump has steadfastly refused to acknowledge his electoral defeat..
In this sense, starting next Monday, the conservative politician will initiate his legal actions in a last attempt to retain the White House.
Although the presidency is unlikely to remain in the hands of Trump anymore, the behavior of the markets with Biden remains to be seen. The first 100 days of mandate will be crucial in determining the price action of the leading cryptocurrency.
Data to take into consideration
- Shortly after Biden’s victory in the US elections was known, the price of Bitcoin plummeted from $ 15,500 to $ 14,200.
- The recovery process did not take long to manifest itself and, a few hours after the fall, the price was again close to $ 15,000.
- On the morning of this Sunday, the value of Bitcoin recovered the support of $ 15,200.
- If it stays at that support, the next barrier for the cryptocurrency could be $ 16,200.
- The elections chapter is not fully closed, as outgoing President Trump announced legal action starting Monday.