Trump or Biden? Which of the U.S. presidential candidates will help bitcoin

Analyst Charles Edwards said that the actions of Donald Trump for the sake of winning the election will lead to growth in the cryptocurrency market. What is the relationship between these events and how THE BTC will react to who will become the new head of the United States

Trump's desire to win the U.S. presidential election is a driver of bitcoin's price growth, analyst and Charles Edwards said on his Twitter account. He explained that the main criterion for victory is the recovery of the stock market after the coronavirus pandemic. Trump is interested in this and will try to influence monetary policy in every possible way in order to "print" more dollars and thus support the economy. The increase in currency issuance leads to its depreciation. This is good for a cryptocurrency whose release is limited.

"Trump wants to win the election. The stock market is a criterion for success. Trump believes he can influence the market through policies and incentives. As a result, the money supply will grow. And how can you bet on the fall in the price of bitcoin?" wrote Edwards.

The way the stock market will run the network is important for the cryptocurrency industry. During the crisis, bitcoin showed a close relationship with the stock market. The exchange rate of the coin rose and fell at the same time as the quotes of the American index of the S'amp;P 500, in June the correlation between the assets reached 90%. This dependence is still and will continue in the medium term, predicted the PR-director of the cryptocurrency exchange Garantex Tatiana Maksimenko. According to her, bitcoin will be able to "untie" from the U.S. market only if it wins the reputation of institutional investors as a safe asset.

"Bitcoin is still strongly tied to the stock market. Stocks are falling - bitcoin is also falling, we saw in March this year. The stock market is recovering, and bitcoin is also recovering. The correlation is still strong, so the exchange rate of bitcoin depends on how the American stock market behaves. We are talking about the medium term, because in the long term bitcoin can reduce dependence on the stock market and become more independent," Maksimenko shared.

One of the drivers of the growth of the U.S. stock market was the allocation of financial support by the government. At the same time, the balance of the U.S. Federal Reserve increased to $7 trillion. And that's not the limit, MacKay Shields CHIEF Executive Jeffrey Flegar said in late April. He is confident that the amount of debt in the Fed accounts will reach $10 trillion by early 2021, Market Watchreports.

The leading trader of United Traders Alexei Markov believes that it does not matter what the outcome of the US presidential election will be. Regardless of whether Trump or Biden wins, the stock market will continue to grow thanks to the infusion of significant liquidity, and this will positively affect the price of cryptocurrencies.

"At the moment it is almost obvious to me that whatever the outcome of the presidential election, the local stock market is focused on growth. We have never seen so much monetary stimulus, so much money is pumped into the system that both Biden and Trump will turn this movement in their favor. For the cryptocurrency market it is good in any case, but do not forget that the rally there has already begun, the alt-season is in full swing," Markov said.

Maksimenko has a similar position. In her opinion, it does not matter who will take the place of the head of state after the US elections. Both candidates will work on the recovery of the economy after the crisis, which will support the stock market and, accordingly, positively influence the cryptocurrency. But the main risk for both remains the second wave of Covid-19 infections.

"It doesn't matter whose name is written on the door to the Oval Office... Both Trump and Biden have various economic stimulus tools in the program. One is in favor of financing major infrastructure projects and is ready to support the coal industry, the other promises to reduce greenhouse gas emissions and spend billions on school modernization and green energy," Maksimenko said.

The ceo of Klopenko Group Dmitry Ivanov voiced a different opinion. From his point of view, it also does not matter who will become the new president of the United States, it will not affect the cryptocurrency market. But it can be negatively affected by the stock market. If stocks continue to rise, investors are unlikely to abandon them in favor of digital assets.

"I don't see a direct link between Trump's victory and the fate of bitcoin. Under Trump, U.S. stock markets are not feeling bad, but I don't assume that liquidity from them can flow in any way into bitcoin. I think that there is no direct link here and even vice versa - as long as the stock market gives investors an excellent opportunity to earn it is unlikely that they will go into such risky assets as cryptocurrency," Ivanov suggested.

Experts agreed that the U.S. presidential election does not matter for bitcoin. Most believe that the exchange rate of the coin depends on the fluctuations of the stock market, and it will grow if any candidate wins, this in particular will help stimulate the economy by the Federal Reserve.

In order to avoid the correlation between the cryptocurrency quotes and the S'amp;P 500 index, the first is to strengthen the status of a protective asset. At the same time, both instruments are at risk of falling due to a possible second wave of coronavirus infections.