Bitcoin rose to its best levels in three years on Wednesday, led by prospects for Joe Biden to win the ongoing US presidential election.
The Democratic contender won critical swing state of Wisconsin in the afternoon hours of the US trading session. His leadership became vital after Donald Trump scored a narrow victory in other battlefield states, including Texas, Florida and Ohio.
So far, the outcome has remained uncertain as other major states such as Georgia, Michigan and Pennsylvania continued to count votes. Recent readings showed that Mr. Biden leads Mr. Trump from 248-211. You need at least 270 votes to win the US presidency.
Biden, Bullish, Bitcoin
Meanwhile, bitcoin traders continued to treat a leading Mr. Biden as their cause for keeping the cryptocurrency bullish. BTC / USD – throughout the voting period – has hurt the Democrat’s performance. A head start for Mr. Trump slowed his upward trend – and vice versa.
After Mr. Biden won Wisconsin, Bitcoin swung sharply towards $ 14,273. Even so, the cryptocurrency quickly pulled back, only to find short-term support near the $ 14,000 level.
Analysts agreed that a succinct win for Mr. Biden is bullish for Bitcoin. The candidate promised his constituents that he would increase government spending needed to help Americans through the economic fallout from the coronavirus.
This should put additional pressure on the US dollar, which in turn increases the prospect of higher Bitcoin bids.
However, the independent market analyst Michaël van de Poppe warned. He noted that the uncertainties surrounding the ongoing election result would make it difficult for Bitcoin to rally above $ 14,000.
“Regardless of the result of the presidential election,” he added, “I am very optimistic about BTC and ETH over the long term.”
Bitcoin was trading at $ 14,051 at the time of this writing.