Alex Krüger, a global market analyst and economist, has predicted that a Democratic victory in the 2020 U.S. presidential election would weaken the U.S. dollar. As a result of which Bitcoin, gold, and silver will see an uptrend.
Impact of Joe Biden’s Presidency on the U.S. Dollar
The victory of Democrat Joe Biden in the U.S. presidential election would result in more tax hikes and regulations. Moreover, these factors could add pressure on the economy and the stock market.
As per the analysis done by Alex Krüger, the decline in the U.S. dollar to cause an increase in the value of gold, silver, and Bitcoin.
The U.S. dollar sentiment depends on the condition of the economy. Furthermore, when the Covid-19 pandemic spread massively in the U.S., the dollar value began to plunge, as remarked by Alex Krüger.
According to Credit Suisse senior investment strategist Suresh Tantia, the stock market will see a 5% pullback during the presidential election. He emphasized on lack of financial support for the equities and dollar from the U.S. Federal Reserve.
Eventually, Suresh Tantia expects the stock markets could recover in 2021. With major stock index possibly showing bullish prospects and a rise in the value of the U.S. dollar. But, in the near term, the elections risk poses a threat to the stock market.
Bitcoin Rally Due to the Fiscal Stimulus Package Scheduled in 2021
Analysts also expect that the second fiscal stimulus package scheduled in the first half of 2021 could also cause Bitcoin to rally. As observed from the previous Bitcoin rally from around $6000 to $12,500, which happened after the announcement of the first fiscal stimulus package by the U.S. government.
Krüger said, “A second stimulus bill would alleviate significant pressure off all asset classes and might fuel the appetite for Bitcoin.”