The US election appears to have triggered a Bitcoin spike to around $ 16,000, as market sentiment heats up with a possible Joe Biden victory
Bitcoin was not the only cryptocurrency to recover in the past 24 hours. As can be seen in the cryptocurrency heat map below, it is a sea of green across the market today.
While the price of BTC rose about 12% to get close to $ 16,000, the rest of the altcoin market mirrored that with bullish breakouts above the main areas of resistance.
On this super Friday Bitcoin is approaching the coveted $ 20,000, a historic record set in December 2017. An analyst firm says the odds of the BTC / USD pair reaching the mark this year have risen to 14%.
Elsewhere, Ethereum has reached highs close to $ 450, as it approaches the launch of its ETH 2.0 update. The second largest cryptocurrency has increased by more than 11% since yesterday, to trade around $ 445 at the time of writing.
XRP, which for a long time underperformed the rest of the top tier crypto assets, gained more than 6% to see traders aiming for a break to $ 0.30. Litecoin rose more than 13% to trade above $ 62, while Polkadot, EOS, ChainLink, Cardano and Tron are among the top cryptocurrencies to turn positive.
In the process, the total value of the cryptocurrency market jumped to more than $ 443 billion – the highest level of the metric since the beginning of January 2018.
The DeFi sector is also seeing an increase in sentiment, even though it is not as impressive as the July to August frenzy that triggered tokens like Compound (COMP), Aave (AAVE), Yearn.finance (YFI) and Synthetix (SYN). The total blocked amount (TVL) is up to $ 12 billion, with more than $ 700 million blocked on multiple projects in the past 24 hours.
The US election played a role
According to market analysts, this Bitcoin rockstar performance is due to the global sentiment surrounding a stalemate in the United States elections.
Projections show that Joe Biden is going to the White House with the Electoral College votes now at 264 for the Democratic candidate, against 214 for Donald Trump. Although Trump was seen as a great choice for the stock market, analysts point to a Biden victory as a more friendly result for cryptocurrency.
So, while futures markets have shrunk after an initial high, cryptocurrency analysts are suggesting that BTC is heading for an even bigger recovery. Altcoins may suffer if BTC becomes vertical, but it is likely to record huge gains if the main digital asset reaches a new consolidation phase just above or below current price levels.