After the news that Joseph Biden was officially the winner of the elections, the price of the pioneering cryptomone currency plummeted.
However, the cost of Bitcoin, in a few hours recovered, which allows us to say that the maturity of this asset has grown exponentially.
Initially, social networks reacted with caution and, in many cases, it was considered a mass sale. The latter would undoubtedly have led to a major drop in the price of digital currency. Despite this, the recovery movements did not take long.
Within hours of the price falling to $14,200, after the news of Biden’s victory, Financial Peak value was close to $15,000 again. So, after a few moves in both directions, the value of the most important of the crypt coins, dawned on the support before Biden’s victory, the $15,200.
Bitcoin, in a sign of maturity, recovers from yesterday’s fall
Seemingly the times when the price of this cryptomon currency sank before any turbulence and remained for a long time at the bottom are behind. The last of these winters was during the year 2018, when the price remained very low until the first quarter of 2019.
Since then, Bitcoin’s maturity has allowed it to overcome one of the stages that most terrified investors: instability. The price of the pioneer crypto currency still suffers from important events, but the big difference is that the recovery comes very quickly.
During the World Health Organization’s (WHO) announcement of the start of the pandemic, the price of Bitcoin plummeted dramatically. In fact, the opponents of cryptomone, aside from announcing the now customary „end of Bitcoin,“ ruled out any possibility that it could be a store of value.
It wasn’t long before large Wall Street investors and traditional companies like MicroStrategy were using it as a store of value. Bitcoin’s recovery from the March collapse was so rapid that it has been the best asset of 2020 ever since.
The rapid recovery of Bitcoin’s price allows many analysts to highlight the maturity of this asset in the face of major events. Source: TradingViewThe rapid recovery of Bitcoin’s price allows many analysts to highlight the maturity of this asset in the face of large events. Source: TradingView
Bitcoin could have a bullish cycle as in 2017
A Repeating Pattern
In this way, Bitcoin’s recovery, allows us to foresee that its maturity is at another level if compared to previous years. In this sense, at this juncture, the day of the presidential elections in the United States arrived, which, as expected, was highly controversial.
Nevertheless, Joe Biden’s clear victory during the counting of the electronic ballots, stopped the atmosphere of turbulence that seemed to be approaching. Trump’s messages became less frightening to market stability, and thus the need to place funds in reserve assets was lessened.
With yesterday’s official announcement of the Democratic candidate’s victory, the price of Bitcoin as a reserve asset reacted negatively. In a matter of minutes, it plummeted from nearly $15,500 to $14,200.
However, it didn’t take long for signs of recovery to appear. Within a few hours, the value of the crypto currency was on the verge of $15,000 again. At the time of writing, its price is above the $15,400 bracket. If it stays there, its next goal will likely still be 16K.
Bitcoin showed its power against DeFi and altcoins
The turbulence does not end
Although Bitcoin’s maturity could be the main factor in this rapid recovery, the uncertainty that remains allows us to say that the story of the election isn’t over. In fact, to date, outgoing President Donald Trump has steadfastly refused to acknowledge his electoral defeat.
In that sense, starting next Monday, the conservative politician will begin his legal actions in a last attempt to retain the White House.
Although it is already unlikely that the presidency will remain in Trump’s hands, the behavior of the markets with Biden remains to be seen. The first 100 days of his term will be crucial in determining the behavior of the price of the leading crypto currency.
Data to take into consideration
- Shortly after Biden’s victory in the U.S. election, Bitcoin’s price plummeted from $15,500 to $14,200.
- The recovery process soon took hold, and within hours of the fall, the price was nearing $15,000 again.
- This Sunday morning, the value of Bitcoin recovered the support of $15,200.
- If it remains at that support, the price will rise to about $15,000.