How Presidential Elections Boost Bitcoin's Market

Every four years, the United States experiences a significant event: the presidential election. This has been observed to coincide with notable movements in the Bitcoin market, raising questions about the connection between the two. Historically, during these election cycles since 2012, Bitcoin's value has surged dramatically following elections. In 2012, Bitcoin started trading at roughly $12 and shot up over 5,000% by early 2013. The trend continued in 2016, where Bitcoin averaged around $600, only to reach nearly $20,000 by the end of 2017. In 2020, Bitcoin was valued at approximately $110,000 and hit a peak of over $60,000 by April 2021—a staggering 6X gain within a year. This predictable cycle suggests more than just coincidence; rather, it highlights a pattern likely driven by investor sentiment reacting to uncertainty. Each election brings an array of uncertainties, influencing investors to flock towards the relatively new and volatile asset of Bitcoin, viewing it perhaps as a hedge against the unpredictable economic landscape shaped by political outcomes.