Bitcoin price will continue to rise no matter who wins US elections: Cryptocurrency Expert
Bitcoin is surging rapidly in recent times and is looking set to record new highs. However, some experts wonder what impact the results of the Presidential elections in the USA will have on its price. Jeff Dorman, chief investment officer at cryptocurrency hedge fund Arca, has other views, though. He states that Bitcoin and other risk assets are not dependent on who wins the US elections. And they should shrug off market uncertainty regardless of the outcome.
Dorman predicted the impact of election results on Bitcoin price during his interview with a leading English finance newspaper. He explained that investors just want to know that there is a winner. Dorman admitted that most investors are looking at a hung election or a result where no single party has an overall majority. Still, at the same time, he made it clear that it doesn’t matter who actually wins because all risk assets will see a big surge.
While shedding more light on the Presidential election results, Dorman said that a Joe Biden victory would be more fruitful for Bitcoin and gold in the longer run. He feels this is because that will mean runaway government spending.
He also pointed out that the Democrats are better for inflation hedges, but he is still confident that the prices will surge as long as there is a clear winner.
Bitcoin prices closer to its 2019 high
Dorman’s assessment of Bitcoin prices has come when Bitcoin is rising quickly and is closing on to the 2019 high of $13,880. In fact, on November 01, it reached $13,705.
This surge can be accredited to several positive news that broke about Bitcoin in recent times. The two major ones being leading fintech firms like Square, Microstrategy, and the UK fintech, revealing they have purchased Bitcoin as cash reserves and PayPal allowing users to buy, sell, and transfer Bitcoin.
The rise of Bitcoin has got everyone interested in the cryptocurrency market. From big investors to small individual investors, everyone is looking to grab a piece of Bitcoin, and the ease of trading has only fueled this surge.
The floodgates are open for everyone: Dorman.
Recently famous investor Paul Tudor Jones referred to Bitcoin as the best inflation trade. Some experts believe this statement triggered the bull market. However, Dorman has downplayed the impact of Jones’ statement.
Dorman explained that a billionaire investor like Tudor Jones getting into Bitcoin is not enough to create a bull market. However, he pointed out that it has lowered the fear factor of entering the digital asset market. Dorman feels most conservative people on Wall Street don’t want to be the first and don’t want to be the last, and that’s why when the precedent is set, it opens the floodgates for everyone else. And he feels it’s not a massive twist, but it is good enough to push the total addressable market of demand for Bitcoin.
Bitcoin, not an alternative to the US Dollar but offers a hedge against inflation: Dorman.
According to Dorman, the fintech firms’ ability to offer digital assets that traditional banks cannot offer is more bad news for banks than good news to bitcoin. He also thinks that Bitcoin is not a safe-haven alternative to US Dollar, which some experts project it as, but he states that Bitcoins can give you a hedge against inflation.