Investors were able to get 18% returns during the third quarter of 2020 on their Bitcoin (BTC) investment. This is despite the current pandemic and the negative effects it had on financial markets and virtual currencies. Now, the main topic that could affect the cryptocurrency market is related to the U.S. presidential elections that are going to take place in November.
Bitcoin Provides 18% Returns in Q3
Despite the volatile situation in the cryptocurrency market, Bitcoin investors were able to get a return of 18% during the third quarter. The cryptocurrency started the third quarter of this year close to $9,130 and then it started moving higher up to its yearly high of $12,475 in August.
During the months of August and September, the virtual currency was traded between $12,475, which worked as a top and $10,000. Now, the main issue related to Bitcoin price is going to be the elections in the United States. It is also worth taking into consideration that President Donald J. Trump has also tested positive for COVID-19, thus, the entire markets are also being affected by this issue.
According to Konstantin Anissimov, despite the 18% returns Bitcoin generated for investors, things remain uncertain about the future. During a conversation with UseTheBitcoin, Mr. Anissimov stated:
“Investors remain uncertain about what the future holds. U.S. President Donald Trump has tested positive for COVID-19, and his ability to participate in the upcoming elections may put in danger the stability of the global financial markets. Even though Bitcoin has served as a hedging asset before, it remains to be seen how it will react to the U.S. presidential elections’ results.”
It will certainly be important for Bitcoin to move from the range $10,330 – $11,130 if it wants to continue with a clear direction. If it moves higher, then it could likely aim for $12,500 and try breaking this resistance level for the virtual currency. However, if Bitcoin falls below $10,330 then we could see the virtual currency moving towards $9,500.
At the time of writing this article, Bitcoin price is being traded around $10,620 and it has a market valuation of $196.66 billion. Uncertainty in the market continues and this could have a negative impact on the price of BTC. Other virtual currencies are also experiencing higher volatility and this could also be a good opportunity for speculators.
