Intraday returns on the Bitcoin spot market surged to over 2 percent as the Democrats took the lead in the Georgia runoff.
By Wednesday’s late Asian trading session, the flagship cryptocurrency had climbed to another record high of $ 35,868, according to Coinbase Crypto Exchange, up 7.54 percent from the intraday low of $ 33,352 at midnight UTC.
Bitcoin trades higher in an Ascending Channel pattern. Source: BTCUSD on TradingView.com
A downright bearish US dollar sentiment was the main catalyst for Bitcoin’s profits. The greenback extended its decline since the beginning of the week by 0.15 percent on Wednesday, prompting speculators in the cryptocurrency market to raise their bids. Bitcoin generally trades in reverse to the US dollar index in the medium term.
Elections in Georgia
The Bitcoin dollar sentiment was based on the Senate elections in Georgia. Democrat Raphael Warnock defeated incumbent Republican Kelly Loeffler in one of the runoff elections. In the meantime, the second competition remained unpredictable.
Democratic victories in both seats would split the US Senate equally between them and the Republicans. Meanwhile, an event that stalls the vote on the upcoming legislation would give Vice-President-elect Kamala the right to give Harriss a casting vote in the Senate.
Investors believe this would pave the wave for Democrats to pass more fiscal packages, starting with a recent proposal to help Americans with a $ 2,000 stimulus check. Bitcoin traders are treating federal and state spending as bearish for the dollar and bullish for their crypto holdings, citing the scarcity.
I said that during election season. A Biden win would cause #Bitcoin to collapse
“Biden Victory” Will Unleash a Rush on Bitcoin “- Asia Times https://t.co/c8KEtJIwoj
– Max Keizer (@maxkeiser) January 6, 2021
Bitcoin bias ahead
Bitcoin’s uptrend was fueled by a number of fundamentals other than a possible blue sweep in Georgia.
Singapore-based mutual fund Three Arrows Capital reported earlier this week that it had increased its exposure to the Bitcoin market through the Grayscale Bitcoin Trust. It now holds 38,888,888 GBTC shares valued at more than $ 1.1 billion.
Meanwhile, JPMorgan & Chase strategists raised their future Bitcoin price target to at least $ 146,000, citing growth versus competing safe haven asset gold.
Crypto visionary and whale @GoingParabolic rocks the @Gemini Hoodie Swag on Fox Business. I love the marquee with @jpmorgan predicting #Bitcoin could go up to 146,000. I think that’s conservative (at least 500,000) but still a nice number. To the moon! ?? pic.twitter.com/BqNPVT0bmE
– Tyler Winklevoss (@tyler) January 6, 2021
Skybridge Capital’s founder and renowned hedge fund manager Anthony Scaramucci also called Bitcoin a superior competitor to the precious metal, stating that it was “easier to store, harder to steal and more portable”.
The statements appeared when Mr. Scaramucci launched a crypto-based mutual fund for institutional investors.
Overall, the narrative favored Bitcoin’s bullish bias. However, there were still some warnings regarding the “overbought” status of the cryptocurrency. The weekly RSI is above 95, which is either a bearish correction in price or an expanded consolidation move.