Bitcoin surges above $14,300 to reach a two-year high, revisiting price levels last seen in January 2018.

With the boost from the U.S. presidential election, the price of Bitcoin reached $14,325 for the first time in 2020, surpassing the 2019 high of $13,868. Today's rise also set a new high for the year, marking a performance not seen since January 15, 2018, when Bitcoin was on a downward trend from its historical high of $20,000.

Presidential Election Boosts Market Sentiment

According to data from the US exchange Coinbase, Bitcoin has risen from $13,563 on November 3. Last night, following positive prospects for Biden's election victory, not only did the US stock market open higher, but Bitcoin, showing a positive correlation, continued to rise in the hours after the opening. This morning (11/5), it reached $14,325 at one point, with a 3.17% increase in the past 24 hours as of the deadline.

CME Total Open Interest Reaches New High

According to data from The Block, in the large Bitcoin open interest contracts on the Chicago Mercantile Exchange (CME) before the presidential election, there were 102 institutional holders, a 20% increase compared to October. Analyst Ryan Todd pointed out:

The large total open interest data in CME Bitcoin futures stands out compared to other products.

Various Perspectives

Given the market's response to the election, David Tawil, CEO of ProChain Capital, stated:

The longer the public remains without a consensus until the election results are finalized, the more favorable it is for cryptocurrencies. If the courts are forced to intervene, market turbulence may persist for some time. The undeniable fact is that the performance of cryptocurrency assets this year has been incredible, even outperforming gold and stocks, and cryptocurrencies will continue to gain more supporters.

Mike McGlone, a commodities analyst at Bloomberg, expressed optimism about Bitcoin's future, stating:

Bitcoin may experience parabolic growth again, as it did in 2013 and 2017, and reaching new highs may only be a matter of time.

McGlone's belief lies in the supply-demand dynamics of Bitcoin, where a decrease in supply (halving of block rewards) amid increasing adoption will drive prices up. This aligns with the Stock-to-Flow (S2F) model emphasized by inventor Plan B. In his report last month for the fourth quarter, McGlone suggested that Bitcoin could reach $100,000 by 2025.

#Bitcoin may undergo a parabolic 2021, as it did in 2013 and 2017, if previous patterns play out again. New highs are a next potential iteration and may be only a matter of time unless something we don't foresee trips up the trend of greater adoption and demand vs. limited supply pic.twitter.com/w742J7bXfC

— Mike McGlone (@mikemcglone11) November 4, 2020

Michael Saylor, CEO of MicroStrategy, who made headlines for investing the company's cash reserves in Bitcoin, has also become one of the most steadfast advocates for Bitcoin in the second half of the year. He tweeted today (11/5) stating:

When I look at Bitcoin, I don't see it as a call option on the future, doomsday insurance, or an unrelated asset class. I see it as a "financial energy currency," reminiscent of oil, antibiotics, and electricity, like handing a torch to frozen investors.