Election day pump? 4 reasons Bitcoin is up 2% in 30 minutes

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Bitcoin (BTC) price rose 2% in just 30 minutes when the US stock market rang its opening bell on November 3rd. During the pre-market, the Dow Jones rose by over 350 points as US election day, causing massive volatility.

The four reasons likely to have seen Bitcoin move up in such a short period of time are choice, stock surge, negative funding, and rising exchange rate outflows.

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Bitcoin hourly chart. Source: TradingView.com

Elections trigger volatility

The US elections are today, but the result cannot be taken for granted. According to surveys, Joe Biden has a head start in major swing states.

The choice is positive for Bitcoin for two reasons. First, according to industry information, BTC would benefit either a Biden or a Trump win in the short term.

Tyler Winklevoss, the CEO of Bitcoin Exchange Gemini, said:

“Both parties are addicted to the Fed’s money printer. Regardless of who wins the election, #Bitcoin will be the only real, long-term winner.”

Fundstrat Global Advisors’ Tom Lee said stocks with Biden earnings could gain 10%. If so, risk-weighted assets would likely recover and ultimately benefit Bitcoin. But if Trump wins, Lee said stocks could see an even bigger rally of 15% to 17%.

Meanwhile, Goldman Sachs issued a note earlier this month indicating that “a blue wave would likely cause us to revise our forecasts.” Although experts are divided over the potential impact of the elections on the stock market, both scenarios appear to be beneficial for BTC by the end of the year.

The recovery in US stock markets coincides with the recovery in BTC

When the Dow Jones rose 350 points in the pre-market, the BTC price rose from around $ 13,500 to $ 13,730 in 30 minutes.

Although Bitcoin has shown a dwindling correlation with US stocks over the past few weeks, BTC and stocks are likely to grow at the same time during an uptrend. While Bitcoin is viewed as a store of value, both BTC and stocks are still risky assets.

A rising stock market could mean that the markets are ambivalent about the eventual winner.