Your favorite crypto news blog

Bitcoin Jumps as Democrats Lead Georgia Runoff Elections; What to Expect?

Bitcoin 2021/01/06 14:30 by Yashu Gola

The intraday returns on the Bitcoin spot market rose above 2 percent as Democrats took the lead in Georgia’s runoff elections.

By the late Asian trading session on Wednesday, the flagship cryptocurrency had surged to another record high of $35,868, according to Coinbase crypto exchange, up 7.54 percent from its intraday low of $33,352 at around midnight UTC.

Bitcoin, cryptocurrency, BTCUSD, BTCUSDTBitcoin trades higher in an Ascending Channel pattern. Source: BTCUSD on TradingView.com
Bitcoin trades higher in an Ascending Channel pattern. Source: BTCUSD on TradingView.com

A downright bearish US dollar sentiment served as the primary catalyst behind Bitcoin’s gains. The greenback extended its week-to-date decline further on Wednesday by falling 0.15 percent, prompting speculators in the cryptocurrency market to raise their bids. Bitcoin generally trades inversely to the US dollar index in the medium-term.

Georgia Elections

The Bitcoin-Dollar sentiment took cues from the Senate elections in Georgia. Democrat Raphael Warnock defeated incumbent Republican Kelly Loeffler in one of the runoffs. Meanwhile, the second contest remained unpredictable.

Democratic wins in both seats would divide the US Senate equally between them and the Republicans. Meanwhile, an event of a hung vote on legislations ahead would allow Vice President-elect Kamala to Harriss the right to provide a decisive voice in the Senate.

Investors believe that would pave the wave for Democrats to pass more fiscal packages, beginning with a recent proposal of aiding Americans with a $2,000 stimulus check. Bitcoin traders treat federal and government spending as bearish for the dollar and bullish for their crypto holdings, citing scarcity.

The Bitcoin Bias Ahead

Bitcoin’s uptrend received a boost from a flurry of fundamentals other than a potential “blue sweep” in Georgia.

Singapore-based investment fund Three Arrows Capital reported in its filing earlier this week that it has increased its exposure in the Bitcoin market via Grayscale Bitcoin Trust. It now holds 38,888,888 GBTC shares worth more than $1.1 billion.

Meanwhile, strategists at JPMorgan & Chase raised their Bitcoin price target for the future to at least $146,000, citing its growth against the rival safe-haven asset, gold.

Skybridge Capital’s founder and renowned hedge fund manager Anthony Scaramucci also pitted Bitcoin as a superior contender to the precious metal, stating that it is “easier to store, harder to steal, and more portable.”

The statements appeared as Mr. Scaramucci launched a crypto-based investment fund for institutional investors.

Overall, the narrative favored Bitcoin’s bullish bias. But there were still a few warnings concerning the cryptocurrency’s “overbought” status. Its weekly RSI is above 95 that amounts to either a bearish price correction or an extended consolidation move.

0 Like(s)

You should also read...

Altcoins 21/11/19 06:30 by Aayush Jindal
Crypto Market Could Dive To $200B, Bitcoin Turns Red: BCH, XLM, EOS, TRX Analysis
The total crypto market cap is currently in a bearish zone below the $220.0B resistance. Bitcoin price is trading above the $8,000 support and remains at a risk of more losses. BCH price is now conso...
Read More
Crypto 22/11/19 15:25 by Jamie Redman
Market Update: Cryptos Shed Billions in Rapid Sell-Off
Digital currency prices have been dropping in value this week and on November 21 the entire cryptoconomy fell below $200 billion. At the moment, most cryptocurrencies are down between 4-12% in the las...
Read More
Bitcoin 27/11/19 05:00 by Martin Young
Do Bitcoin Trend Lines Indicate a Possible Thanksgiving Rally?
Following a dip into the mid $6k zone as predicted, Bitcoin has recovered back above $7k. Analysts have been looking at trend lines to determine if there is any hope of a Thanksgiving or Christmas ral...
Read More
Bitcoin 04/12/19 23:00 by Rick D.
A Bitcoiner in the Senate? Is Bakkt CEO in US Govt. Good or Bad for Crypto?
The CEO of the much-hyped Bitcoin futures platform Bakkt has been appointed to serve in the US Senate. Loeffler will replace Georgia Senator Johnny Isakson, who is due to retire at the end of this mon...
Read More
Other 12/11/20 22:00 by Cole Petersen
Yearn.finance (YFI) Tests Key Support as Funding Rates Flip Negative
Yearn.finance’s YFI token has been facing some intense selling pressure today as the focus shifts back to Bitcoin. YFI and other blue-chip DeFi tokens have posted some massive gains throughout t...
Read More