Bitcoin Retained Most of Recent Gains Ahead of US Election

Cryptocurrency’s most dominant coin Bitcoin continues to trade above $13,500 a coin as the uncertainty surrounding the United States dollar deepened.

The cryptocurrency rose from about $10,000 a coin it has been trading Bitcoin halving of May 12 to over $13,721 on October 27, 2020, a 16-month high despite the global selloff in stocks. Suggesting that the digital asset is mirroring gold as a haven asset that people actually realised or have come to term with.

Investors are jumping on the digital asset to avoid the negative impact of the United States’ presidential election on their portfolio and curb unnecessary exposure to risk. Meaning, investors have started attributing haven assets characteristics to Bitcoin despite the fact that it is unregulated and a tool in the hands of cybercriminals.

Still, Bitcoin declined by 0.64 percent on Friday to $13,543 as the race to the White House between Joe Biden and President Trump intensified amid rising support for the former Vice President of the United States, Joe Biden.

“With the U.S. election just days away, we are going to have to be patient when it comes to headwinds lifting BTC (BTC, -0.64%) to new multi-year highs,” Matt Blom, head of sales and trading at Diginex, a cryptocurrency-focused financial firm.

While Bitcoin had dropped 0.64 percent on Friday and retains most of its gains in recent days, traditional assets in Europe, US, Asia and even commodities have all nosedived more in terms of percentage and capital inflow.

In a note to clients, Jean-Francois Paren, the head of global market research at Credit Agricole CIB, said “Our short-term risk appetite indicator is firmly in negative territory.”