Bitcoin Could Hit New Yearly High on US Election Risks, Hints Citibank Report | NewsBTC


Bitcoin could hit a new year-to-date (YTD) high, abetted in part by the risks surrounding the US presidential election.

The analogy takes cues from a quarterly commodity outlook published by Citigroup. The American banking giant specifically based its report on gold and its potential behavior amid the election season this November. It noted that the precious metal may rise to a new yearly high, stating that the market is underplaying the asset’s ability to grow against the election’s uncertainty.

Connecting Dots

Bitcoin, which has erratically tailed the gold market since March 2020, fell this week against a similar geopolitical outlook. The cryptocurrency briefly touched $10,100 as the Federal Reserve Chairman Jerome Powell warned about their inability to support the US economy without the second coronavirus stimulus package.

How To Get Free Crypto  
14 BTC & 95,000 Free Spins for every player, only in mBitcasino’s Exotic Crypto Paradise! Play Now!

The US Congress delayed the long-awaited financial aid as the Democrats and Republicans argued over the size of the help. Many economists and analysts anticipated that the second stimulus package won’t arrive before the presidential election.

The said delay appeared even as the US reported a historically high unemployment rate, a rise in the number of bankrupted small and medium-sized businesses, a resurgence in coronavirus cases. That further led investors to park part of their capital back into the US dollar.

It overall reduced the appeal of other safe-haven and risk-on assets. As a result, Bitcoin, gold, and stocks gave up part of their gains to the stronger dollar outlook.

Bitcoin-Gold-DXY correlation. Source: TradingView.com

But for Citibank, there is still room to grow, at least for gold. The bank wrote in its report:

“The election could be an extraordinary catalyst for gold flat price and volatility skew late in the fourth quarter, even though historically there is no clear pattern for gold trading or price volatility into and after U.S. elections. That is one reason why we expect gold prices to hit fresh records before year-end.”

Influence on Bitcoin

The Citibank outlook of gold left Bitcoin under a similar upside spell. Its report highlighted that the safe-havens should rise as long as the Fed continues on its expansionary approach to aid the US economy. It would mean ultralow interest rates and higher growth in inflation.

Coinbase Banner  

Demand also expects to come from the rest of the world as global central banks strive for interest rates near or below zero. Just two weeks ago, the Bank of England discussed negative lending facilities to boost spending on market-aiding programs.

While a new influx of cash helps the households and businesses, it steals yields from the account of savers. Tyler Winklevoss, the co-founder of the Gemini crypto exchange, said that people should “long Bitcoin” to save their incomes from further depletion.

“If the Bank of England adopts negative interest rates, they would be paying you to borrow. You couldn’t buy a better advertisement for Bitcoinbut u can take their money and go long bitcoin.”

Bitcoin was trading about 45 percent higher on a YTD timeframe.

Go to Source
Author: Yashu Gola


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.