The news that Joseph Biden was officially the winner of the presidential elections led the price of Bitcoin to plummet. However, the pioneering cryptocurrency recovered in a few hours, showing that its maturity has grown exponentially.
At first, social media reacted cautiously and many users considered selling their Bitcoin holdings massively. The latter would have caused a large drop in the price of Bitcoin. However, signs of recovery did not take long to appear.
The news on Biden victory caused the price to drop to USD 14,200, but the cryptocurrency touched USD 15,000 again. After some movement in both directions, the value of the most important cryptocurrency regained the support of USD 15,200 that it had before Biden’s victory.
Bitcoin Rebounds from Its Drop, Showing Its Maturity
The times when the price of Bitcoin sank during any turmoil and remained at the bottom for a long time seem to be distant. The last of those winters occurred in 2018 when the price remained very low until the first quarter of 2019.
Since then, the maturity of Bitcoin has allowed it to overcome the instability that terrified investors. The price of the pioneering cryptocurrency still suffers in the face of remarkable events, but its recovery comes very quickly.
The price of Bitcoin plummeted dramatically due to the announcement of the World Health Organization (WHO) about the start of the COVID-19 pandemic. Adversaries of the cryptocurrency predicted the “end of Bitcoin,” discarding any possibility that it would continue to be a store of value.
A short time later, large Wall Street investors and traditional companies such as MicroStrategy used it precisely as a store of value. Bitcoin rebounded from the market crash that took place in March so quickly that it has performed as the best asset of 2020 ever since.
The Repeating Pattern
The recovery of Bitcoin allows foreseeing that its maturity is at another level compared to previous years. In that context, the day of the presidential elections in the United States arrived, which significantly influenced the drop in the price of the main cryptocurrency.
With the official announcement about Biden’s victory, the price of Bitcoin as a reserve asset reacted negatively. For that reason, it plummeted from almost USD 15,500 to USD 14,200.
However, the price of the cryptocurrency showed signs of recovery, reaching USD 15,000 again in a few hours. At the time of writing this article, its price is above the USD 15,400 support. If it continues that trend, its next goal could be USD 16,000.
This Is an Endless Turmoil
The maturity of Bitcoin could be the main factor in this rapid recovery. However, the current uncertainty suggests that the history of the presidential elections is not over.
Biden’s victory leads many to wonder how the markets, including that of Bitcoin, will behave during his administration. The first 100 days of his term of office will be a crucial factor in determining the behavior of the price of the leading cryptocurrency.
By Alexander Salazar
