The Effects of the US Election to the Performance of Crypto and Financial Assets
As we get closer to the US Presidential Election day, online investors of different trading styles and backgrounds are looking for signs that will help them plan their next move. The election result for the world’s largest economy will definitely have an effect on the performance of most financial assets. With that in mind, investors will need to think twice before opening new or closing ongoing trading positions. This does not only apply to traditional financial assets, but also to digital financial assets such as cryptocurrencies.
Election results have always affected a country’s economy. When we are talking about the election results for one of the world’s financial superpowers, then these effects become visible at a global scale. In terms of financial asset performance effects, the winner of the battle between current president Donald Trump and challenger Joe Biden is not as important as the way the first or the second candidate will win the election. A clear result will potentially have a positive effect on the markets, regardless of the candidate that wins the election. On the other hand, a narrow win or a contested result will only create uncertainty to the markets, potentially affecting financial assets negatively.
Seeing the financial market underperform or show signs of slowing down during a period of economic uncertainty and political instability is not unnatural. On many occasions, such periods are like wagering your money on games of chance. Lady Luck might be on your side and grant you profits like when you play your favourite games to win real money, or you might open a wrong trading position and risk losing part of your investment funds. This, of course does not mean that investors should completely refrain from trading, as such as development would be catastrophic for the financial market.
What Are the Exit Polls Showing?
It is no secret that 2020 has been a tough year for the governing parties of most countries. Everything that has happened since the beginning of the year, has put a lot of pressure on Presidents and Prime Ministers and Donald Trump is no exception. The current President’s popularity is at its lowest point, and this is something that seems to favour Joe Biden. Nevertheless, the popular vote is not always the decider of the outcome of the US Presidential election. In addition to winning the popular vote, a candidate will also need to win the majority of the electoral votes. A candidate can become the President by winning 270 or more electoral votes. On most occasions, electors will respect the outcome of the popular vote, but it is not uncommon for an elector to choose the candidate that has earned fewer votes.
The Battleground States of the 2020 Election
The outcome of every Presidential Election in the United States has come down to winning certain key States. These States are referred to as “battlegrounds”, and by getting a win there, a candidate increases his or her chances for the presidency. Most political experts believe that the 2020 election will be decided in Arizona, Florida, Georgia, Michigan, Minnesota, North Carolina, Pennsylvania and Wisconsin. Currently, Joe Biden seems to be the favourite to win in most of these States, and this is the reason why many people see him as the candidate that is closest to the presidency.