As it is known, US President Donald Trump has reapplied for the Presidential Elections to be held on November 3, 2020. Trump, who frequently criticized Joe Biden, the candidate of his strong rival democrats, increased his criticism and commented on the US economy and markets going through the economic downturn caused by the Covid-19 pandemic.
“If Biden wins, there will be a market crash unlike anything this country has seen before.”
In one of the tweets shared by Foreks Haber on its Twitter accounts, it was emphasized that if Trump wins, the markets will collapse. While Trump’s words resonated; What awaits the markets after the elections was also a matter of curiosity.
Trump’s impact on the markets excites many. So what effect does Bitcoin expect?
US Incentive Packages and Bitcoin
Incentive packages do not directly raise interest in high-risk assets such as stocks and cryptocurrencies. But it creates optimism among investors and adds additional liquidity to the financial market. From the end of March, the Bitcoin spot market and stock trading apps like Robinhood saw a significant increase in user activity. The Bitcoin and stocks market was dominated by fear of missing out (FOMO) the rally that ran from April to May. Unsurprisingly, both Bitcoin’s spot market and stock applications appeal primarily to retail investors.
Increasing investors’ confidence in the short-term trend in the stock market benefits Bitcoin. But the leading cryptocurrency also has important macro factors that can drive the next rise.