- Cryptocurrencies fluctuated in reaction to the U.S election but finished higher.
- Bitcoin Cash (BCH) plans to carry out a hard fork (11/15)
Bitcoin (BTC) traded in a volatile manner due to uncertainty about the U.S. presidential election and rising COVID-19 numbers but finished higher for a third straight week. BTC’s price swelled as high as $16,000 before settling at $15,500 to close the week. Some short-term digestion is not surprising after such a move higher.
Democratic challenger Joe Biden approached victory in a razor-thin presidential vote count while Republicans gained seats in the U.S. House of Representatives and held key senate seats. Both equity and crypto markets embraced the idea of a split government, soaring on the news. A split government means more checks and balances and alleviates the concern that one political party will dictate the country’s direction.
Ethereum (ETH) also rose in anticipation of the upcoming release of Ethereum 2.0. Ethereum 2.0 is a highly anticipated upgrade to the Ethereum network. ETH 2.0 will supposedly provide more scalability and tighter security to the network.
This Week’s Topics
- Ethereum 2.0 could launch as early as December 1st
- Number of addresses holding ETH hits record highs.
- Ethereum’s hash rate hits new highs.
- Bitcoin Cash (BCH) fork to occur November 15th
Next Week’s Market Forecast
Before the U.S. election occurred, volatility in most major asset classes shot higher and later subsided as the outcome became more certain. Typically, markets do not like uncertainty. Mr. Biden seems to have the easiest route to victory at this juncture but sitting President Donald Trump has vowed to forge on with a court battle to overturn what he sees as an unfair election. Investors should be aware that any prolonged court battle could lead to another increase in volatility in the short-term, especially with prices as heated as they are now.
For now, the major cryptocurrencies remain in a robust bull market. Until the price trend changes, it is hard to think otherwise. This does not mean a pullback is out of the question short-term, however. One key event to watch moving forward is the upcoming Bitcoin Cash (BCH) fork set for November 15th. A fork is when a user base or group of developers decide something fundamental about the cryptocurrency must change.