Bitcoin Is Up Nearly 2,000% Since the 2016 U.S. Election
In the four years since the previous U.S. presidential election, Bitcoin has appreciated by nearly 2,000%.
On November 8th, 2016, the day of the election that made Donald Trump president, Bitcoin traded at approximately $700, while today, one coin goes for $14,300 - a gain of more than 1,900%.
As noted by Kraken's Dan Held, as of the 2012 presidential election, the Bitcoin price traded even lower, at $10. This means that since the 2012 election, the cryptocurrency has appreciated by 140,000%.
Much has changed since the past elections.
Today, Bitcoin is increasingly adopted by institutions and recognized as a viable hedge against macroeconomic and geopolitical trends. This shift in perception and market positioning has played a bit part in the cryptocurrency's surge over the last years.
The Start of a New Rally for Bitcoin
Analysts believe that the latest election could mark the start of another rally for the Bitcoin market.
On Wednesday, analyst "Light" shared that a research note which indicates that after each of the past three elections, there was a strong influx of capital into the equities market. While this does not necessarily mean Bitcoin will move higher with equities, the influx of capital seen after elections suggests investors take a "risk-on" approach to investing, no matter what candidate is sworn in.
The data indicates that once a candidate is decided as the winner, investors become comfortable putting capital into the market as they can better anticipate the economic and political impacts following the election. Whether we will be able to see a similar trend with Bitcoin this cycle remains to be seen.