Some project that seeing a Bitcoin at $ 15,000 by the end of the year is possible.

The nature of this article is merely focused on predictions in the context of markets like Bitcoin or the stock market. It is relevant to say that the smart investor does not point his aim on predictions but in values.

Investing is defined as the placement of capital in undervalued assets to take the needed advantages of market corrections shortly. It is possible to go beyond current valuations and project growth into the future. But generally speaking, the only prediction we can make is about the constant changes in the markets.

Some actors argue that the predictions are valid. And, in a way, they are right. After all, every investor expects their investments to grow and increase in the future according to the nature of said investments.

It is assumed that the benefit of the investor is to buy at a price and then sell at a higher price. That is the basis, but this cannot be done just under the magic spell of a prediction or an announcement of some specific price on a very punctual date.

Some say that predicting a market is easy, and it is something possible to do. The problem is that these predictions seldom come true; we know that. The crypto community is still a small planet. It is easy to find out that some predictors are hugely mistaken just by taking a brief look at Google.

The variables are too many to obtain an accurate result. However, many bitcoiners are tempted to make predictions, because they already know what people want to hear and that precious news is: a juicy large number, media attention is there, waiting for a spectacle.

Now is $ 15K for Bitcoin possible after the election? Of course, it is possible. But it is hard to be sure about it, the scenarios are ready, but something well-known is that scenarios like financial markets do not react in a good manner to uncertainty, a slowdown is for sure something to expect, but volatility can also surprise us.

The presidential elections are always covered by the massive cloak of media. A flawless victory may lead to volatility; a close result may lead to more uncertainty which would instantly bring us an imminent slowdown.

The importance of uncertainty in prices must be highlighted. Now, what could happen after the elections? History tells us that after a presidential election in the US, the markets generally do not take a very definite trend. In other words, they tend to enter a period of adaptation by assuming a lateral movement, despite passing ups and downs.

Additionally, markets also tend to prefer the reelection candidate over the newcomer because markets prefer continuity to change. This implies that Trump could have a positive impact (in the short term) in the markets if he wins.

However, the economy tends to perform better during Democratic administrations than during Republican ones. So markets tend to grow much more (in the long run) with a Democratic president than a Republican one.

We must also take into account the configuration of Congress. Markets tend to look better at mixed congresses because they tend to be better for the economy. A Congress dominated too much by one party is often damaging.

If Congress and the President are from the same party, it is problematic because that facilitates the taking of radical measures. And if the Congress and the President are from different parties, it is also problematic because these two powers could be tempted to sabotage each other. For this reason, mixed Congresses are preferable because these forces politicians to work together on bipartisan solutions.

By: Jenson Nuñez.

 

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