The cryptocurrency market, especially Bitcoin, often reacts to major economic and political events around the world. The US presidential elections are one of the major events that can influence market sentiment. Here is a look at Bitcoin price trends during the 2012, 2016, and 2020 elections.
2012 — Barack Obama's Re-Election
In 2012, the cryptocurrency market was still in its infancy. Bitcoin was a new technology and attracted only a small group of investors. Therefore, the re-election of Barack Obama did not have much impact on the market.
October 2012: Bitcoin price hovers around $12.
November 2012 (Election Month): Bitcoin price remains stable, trading in the $12–$13 range.
December 2012: There was a slight increase, the price reached around 13 USD.
While the 2012 election did not cause major fluctuations in Bitcoin prices, it was around this time that the cryptocurrency market began to gain traction. The election had little impact on Bitcoin, given the nascent nature of the market.
2016 — Donald Trump's Victory
The 2016 election marked a turning point in the growing interest in Bitcoin. Donald Trump's victory created expectations of changes in financial policy, making Bitcoin more attractive to investors.
October 2016: Bitcoin price at $600.
November 2016 (Election Month): Immediately after Trump won, Bitcoin price rose to $700.
December 2016: Continued strong increase to $950.
January 2017: Bitcoin hits $1,000, setting a new price peak.
2016 was a time when Bitcoin became more widely known and Trump's election boosted market sentiment. Amid expectations for new economic policies and growing interest from investors, Bitcoin had a clear price increase.
2020 — Joe Biden's Victory
The 2020 election took place in a unique context: the COVID-19 pandemic has shaken the global economy and economic stimulus has become the top measure of many countries, including the United States. Joe Biden's victory, along with economic stimulus policies and interest from large institutions, has pushed Bitcoin prices to new heights.
October 2020: Bitcoin trades in the range of $10,500–$11,000.
November 2020 (Election Month): Following Biden's victory, Bitcoin price surged to $13,800–$15,500.
December 2020: Bitcoin price surges to $29,000.
January 2021: Bitcoin hits $40,000, setting a historic milestone.
At this time, financial institutions and large investors began to look at Bitcoin as an alternative store of value. The momentum of economic stimulus measures from governments and the need to seek safe havens amid uncertainty fueled the Bitcoin boom.
Conclude
Through the US presidential elections from 2012 to 2020, it can be seen that Bitcoin has responded to the surrounding political and economic context. However, not only the elections but also other factors such as the interest of financial institutions, the global economic situation, and especially economic stimulus packages have greatly affected the price trend of Bitcoin. This shows that although the US presidential elections can affect market sentiment in the short term, macroeconomic factors and global trends are still the main factors that determine the value of Bitcoin in the long term.