Wells Fargo Warns Of Stock Shock From Biden Win, How Would Bitcoin Behave?

Wells Fargo Warns Of Stock Shock From Biden Win, How Would Bitcoin Behave?

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29. June 2020. by adminBTC
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Previous information exhibits that Bitcoin bull market breakouts sometimes occur following a US Presidential Election. Nonetheless, Democratic get together candidate Joe Biden has lately overtaken Trump within the polls – one thing Wells Fargo warns might shake up the inventory market. And with Bitcoin tightly correlated to the inventory market, a Biden win may very
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Previous information exhibits that Bitcoin bull market breakouts sometimes occur following a US Presidential Election. Nonetheless, Democratic get together candidate Joe Biden has lately overtaken Trump within the polls – one thing Wells Fargo warns might shake up the inventory market.

And with Bitcoin tightly correlated to the inventory market, a Biden win may very well be dangerous to the main cryptocurrency by market cap. However why?

Wells Fargo Chief Strategist Warns of Inventory Market Response To Joe Biden Win

The US presidential election is coming in only a few brief months. Present and controversial President Donald Trump will face off towards former Vice President Joe Biden.

Biden served within the function below Barack Obama from 2009 to 2017 and was the 47th Vice President within the White Home.

Now Biden is seeking to tackle the top-ranking function within the nation, and oust Trump from the White Home after only one time period.

The financial system might now be in hassle below Trump’s watch, although his presidency has carried out wonders for the inventory market. A good tax atmosphere and different company advantages have helped the inventory market growth.

RELATED READING | GROWING MISTRUST IN GOVERNMENT AUTHORITY MAY BOOST BITCOIN BUYING

In the beginning of the yr, main inventory indices just like the S&P 500, the Dow, and extra set a brand new all-time excessive.

However the pandemic brought about a serious shakeup in markets and dealt a robust blow to the financial system. It brought about the inventory market to set its worst quarterly shut on document. Bitcoin additionally crashed over 50% within the insanity.

In these circumstances, Biden taking up might make issues worse on account of a poor tax local weather and different adjustments doubtlessly coming from a Democratic energy change.

Wells Fargo head of fairness technique Chris Harvey says {that a} Biden win is a serious threat to the market. Harvey additionally says that the potential state of affairs isn’t but “priced into the market,” in response to feedback made on CNBC’s Buying and selling Nation.

bitcoin stock market biden presidential election

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Bitcoin Correlation With S&P 500 May Be Dangerous Put up 2020 Presidential Election

The primary-ever cryptocurrency has solely existed just a little greater than a decade. However throughout that point, its seen three whole US presidential elections. The 2 prior presidential elections sparked unimaginable bull runs in Bitcoin after the uncertainty settled.

From the second Trump took workplace, Bitcoin went on its strongest bull market ever. The asset peaked a yr after Trump took workplace at $20,000.

This subsequent time, nonetheless, might not have such optimistic outcomes if Wells Fargo is right.

RELATED READING | HOW THE 2020 US PRESIDENTIAL ELECTION MAY BE KEEPING BITCOIN AT BAY

Bitcoin has been tightly correlated with the S&P 500 over the past a number of months. The S&P 500 is among the most essential US inventory indices and a barometer to the nation’s financial well being.

Lately, because the S&P 500 rises and falls, Bitcoin follows intently behind. If a Biden win drags down the inventory market post-election or will get priced in pre-election, it may very well be dangerous to Bitcoin.

The cryptocurrency’s subsequent bull market may very well be postponed additional in consequence. If not, as previous information suggests, the election may very well be the one factor standing in the best way of the subsequent bull market.

Featured picture from Shutterstock.

Charts by way of TradingView.



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