I am not going too deep into the Biden-Trump dispute, but I am going to suggest you a couple of thoughts.
At first: Biden has won the elections and at the moment the news got out, we faced on the Exchange something like this.
Not so good for Bitcoin.
But, what was that?
Forex markets were closed in the weekend and also main indexes from the major Stock Exchanges, such as S&P500 do not have official open markets during the weekend.
Well, I am writing this first piece on Sunday 8th November, and I will complete this piece on Monday, after American markets will open their digital gates.
What do I expect?
A huge bearish gap and the collapse of the market.
In Italian we have a common saying stating that “if that much gives me that much, I will just have that much”.
This is the graph of EUR/USD, and you can see that from the beginning of November, the Dollar has continuously lost ground against Euro (and other major currencies). This was due to the political uncertainty that is the only one forecastable variable for “first world countries”: national parameters losing ground.
While dollar was losing ground, Bitcoin, Gold and other precious metals have gained weight if compared to the dollar and that is why we assisted to a bull run towards 16k$.
And after the Biden announce?
S&P has kept pushing (as you can see from the image above).
EUR/USD has adjusted its targets and retraced a little bit, representing a higher Dollar power.
At the moment we are still not 100%sure that Biden will become the next USA President, and an eventual reversal towards Trump and further legal battle, will create turbulence in the markets.
A legal battle will even freeze markets for some time.