The rally in bitcoin prices continues despite the fact that the results of the US elections are not yet known.
- According to the CoinDesk Bitcoin Price Index, the largest cryptocurrency by market value jumped to a 33-month high of $ 14,558 shortly before the press release, resulting in a 101% annual gain.
- The cryptocurrency is up 38% in the past four weeks alone.
- Prices did indeed drop slightly from $ 14,000 to $ 13,520 during Asian trading hours on Wednesday after President Trump's victory in Florida and other key states appeared to diminish the chances of a larger spending package led by Democrat Joe Biden.
- However, the drop was quickly reversed and the cryptocurrency resumed its uptrend from October lows around $ 10,400, possibly in anticipation of continued Fed stimulus.
- “We may not know what a post-election [fiscal] stimulus might look like, but investors continue to believe that the Fed will continue to print money at a pace that favors limited Bitcoin supply,” says John Kramer, a trader with cryptocurrency provider GSR.
- The central bank is unlikely to cut or stop buying liquidity-boosting bonds to boost inflation and has pledged to maintain low interest rates for some time after inflation surpasses the 2% target.
- The central bank is expected to repeat the pigeon tilt later today and may express its willingness to do more if the election results lead to a prolonged period of uncertainty for the economy and markets.
- "If there is social unrest due to Trump's victory, the Fed prints. If the election result is Blue Wave and taxes rise, the dollar falls because the Fed prints more and more," said Bill Noble, chief technical analyst at Token Metrics, a research firm on cryptocurrencies.
- Democrat Joe Biden has reportedly moved gradually closer to the White House, but the jury is still in the election, and President Trump is suing key States in an effort to suspend mail-counting.