So it’s Tuesday morning, and after yesterday’s first presidential debate in the US, there’s every chance we will see some level of increased volatility in the bitcoin price as we head into the European open this morning. When the US kicks off for the day, we’ll probably see this volatility amplify.
Exactly how things will play out remain uncertain – the implications of political uncertainty on an asset like bitcoin are just that – uncertain – but our best bet is risk rooted. Uncertainty pretty much only ever leads to a reduced risk tolerance, and risk off sentiment translates to a shift from the risk on asset classes to the risk off asset classes.
For a couple of years now, we’ve been painting bitcoin as having the potential to fall well within the realms of the latter. Just like gold, we expect bitcoin to rise on the back of uncertainty, which gives us something of a bullish longer term bias (4-6 months and beyond).
Today, of course, we’re going to stick with the near term. We’ll kick things off with the European session and see how price plays out from there on in.
So, let’s get to the detail. As ever, take a quick