The most controversial election in my lifetime will likely have a tremendous impact on the price of risky assets, including bitcoin
We are now less than 2 months away from perhaps the most controversial election in the last 40 years.
Given that backdrop, it makes sense to expect that the outcome may have far reaching impacts on stocks, gold, and probably bitcoin.
If Joe Biden wins there is likely to be an increase in taxes across the board and we are likely to see Donald Trump challenge the results and claim voter fraud as well as the election being stolen from him.
The fallout from which could last for months post election.
If Donald Trump wins the exact same thing will happen as well. Mostly spearheaded by the BLM movement which will not accept anything but a Donald Trump exit from office. And we've already seen the lengths of protesting and rioting that this group will go to, can you imagine what might happen if Trump were to win again?
That being said, let me know your thoughts below on what a Biden or Trump presidency means for the price of risky assets, specifically for bitcoin.
Based on how efficient markets tend to me and based on how the polls have looked for months, I suspect that the markets are mostly pricing in a Joe Biden victory.
That includes higher taxes for corporations and the wealthy.
Which also means investors are thinking that a Biden presidency would be good for gold and bad for the dollar as that has been the trend fro months now.
That being said, I suspect stocks could struggle with a Biden victory, specifically because the narrative that we seem to be getting from the left is that of more social programs and more help for the underprivileged and poor.
On the other side, a Trump victory likely shocks markets, which would probably cause some panic initially, especially with all the rioting and turmoil it would cause.
However, I think stocks would start marching higher shortly after as he has been very good for the stock market over the years cutting taxes and seemingly favoring capitalism.
And if stocks go higher, it probably means bitcoin goes higher as well as it has been more correlated to stocks over the last 6 months than any other asset.
I think if either candidtate becomes president bitcoin will do well. Trump is more likely to try and ban it than Biden is in my opinion but both candidates will likely see continuing money printing and devaluation of the dollar which will likely continue to be good for bitcoin prices.
What do you think?
Stay informed my friends.
Posted Using LeoFinance