Bitcoin will get a “meaningful price boost” as the US election goes to the wire and Americans brace for a long wait for the result, affirms the CEO of a $12bn financial advisory and fintech organisation.
The forecast from Nigel Green, chief executive and founder of deVere Group comes as the world’s largest cryptocurrency gained 4% over 24 hours, surging past $14,000, as Americans cast their vote in the most divisive presidential election in modern history.
Green says: “We still don’t know who has won the keys to the White House and we probably won’t for some days to come. What we do know is that delays, legal challenges and a potentially explosive constitutional crisis in the world’s largest economy is likely to give Bitcoin a meaningful price boost. Bitcoin – already one of the year’s best-performing assets, gaining 50% in six months – could re-trace its great historic 2017 rally when it hit $20,000.”
He continues: “Financial markets loathe uncertainty and are being shaken by political upheaval, a weak economy and social unrest in the U.S. As a result, investors will pile into safe-haven assets, in particular those not tied to any specific country, such as Bitcoin and gold, as a shield against the turbulence.”
The deVere boss, who launched the pioneering deVere Crypto app in 2018, goes on to add: “Other key drivers of a bullish Bitcoin market are that it is a legitimate hedge against longer-term inflation concerns which have come to the fore due to stimulus packages – more of which are promised by both parties.
“These emergency measures, like the massive money-printing agenda, reduce the value of traditional currencies like the dollar. In addition, there are question marks hanging over other issues – including rising Covid-19 cases globally, Brexit, and U.S.-China trade tensions, that will drive retail and institutional investor interest in Bitcoin and other leading cryptocurrencies.”
Mr Green concludes: “I’m in no doubt that with the fallout of global events, including the U.S. presidential election, the trajectory of Bitcoin for the rest of 2020 is upward.”
Ethereum Market Cap Soared Over 200% YTD to $44.3bn – 2.5 times Bigger Increase than Bitcoin
Cryptocurrencies continue their impressive growth in 2020, drawing more and more attention from investors in times of economic uncertainty caused by the COVID-19 outbreak.
According to data presented by AksjeBloggen, the market capitalisation of the world’s second-largest crypto coin, Ethereum, soared by 213% YTD to $44.3bn, 2.5 times bigger increase than the leading cryptocurrency Bitcoin.
Almost 250% Jump After the COVID-19 Crash
After an impressive performance in the first two months of 2020, Ethereum market capitalization slumped by 58% in the second week of March, falling to $12.7bn, revealed the CoinMarketCap data.
However, the price of the world’s second-largest crypto coin quickly bounced back, with market cap recovering to $25.1bn in the second quarter of 2020. Statistics show the increasing trend continued in the third quarter of the year, with the combined value of all Ethereum coins peaking at $53.5bn in September, a 102% jump in three months. Although the last month witnessed a slight decrease, with the market capitalization slipping to $44.3bn, this value still represents a 250% jump after the crash in March.
As the world’s leading cryptocurrency, Bitcoin witnessed an 86% increase in market capitalization since the beginning of the year. In January, the combined value of all Bitcoins circulating in the crypto space amounted to $130.54bn. After a sharp fall to around $90bn in March, this figure surged to $176.2bn in June, a 95% jump in three months. Statistics show the market cap of the leading digital currency globally rose to $245bn at the end of last week.
XRP, the third-largest cryptocurrency globally, witnessed a 32% increase in market capitalization in 2020, with the figure rising from $8.4bn in January to $11.1bn last week.
Ethereum Hit Over 1 Million Daily Transactions in Q3 2020
Besides a surge in market capitalization, Ethereum also witnessed a significant increase in daily transactions worldwide. In the first quarter of 2020, the average number of daily Ethereum transactions amounted to 537,900, revealed the BitInfoCharts data. Over the next three months, this figure dropped by 14% to 463,100.
However, at the end of the third quarter of 2020, there were more than a million Ethereum transactions recorded daily worldwide, a 100% increase since the beginning of the year.