- Bitcoin has rapidly become a macro asset throughout the past few weeks and months, with the crypto trading largely based on global economic trends and events
- This has greatly benefited the cryptocurrency as of late, with a combination of stock market strength, weakness in the Dollar, and some economic uncertainty in the future all bolstering it
- One economist is now noting that there is one crucial economic event that will likely guide Bitcoin’s price action in the near-term
- He notes that the Georgia Senate election run-off will determine if Democrats can gain control of the Senate
- If they do, he believes that massive spending and currency debasement will lead to a weak Dollar, which will bolster Bitcoin
Bitcoin has seen some of the most bullish price action it has ever seen since the cryptocurrency’s price first peaked at highs of $20,000 a few years ago.
These highs are now within reach for the cryptocurrency, but this time it is being driven higher by fundamental value and not just a wave of retail “FOMO.”
In fact, there’s almost no “FOMO” to be found in the crypto market at the present moment. Funding rates for BTC have been oscillating between neutral and negative over the past few weeks, suggesting that there are still tons of traders betting against this recent uptrend.
Bitcoin Rejects at $16,000 Despite Intense Strength
At the time of writing, Bitcoin is trading down marginally at its current price of $15,400.
This is around the price at which it has been trading throughout the past day, with yesterday’s rejection at $16,000 striking a serious blow to its strength.
It may need to see some consolidation before it can move higher, and data some seem to suggest that miners are beginning to offload their holdings.
Economist Claims Georgia Election Will Determine BTC’s Fate
One economist said in a recent tweet that the Georgia Senate election run-off – which determines which party controls the senate – will play a massive role in Bitcoin’s mid-term outlook.
He notes that if Democrats take control of all three branches of the government, Bitcoin will likely trend higher due to massive spending and currency debasement.
“The key BTC driver until Jan/5 will likely be the Georgia Senate election run-off, that would determine if Democrats get to control the senate. If they do, hello massive spending and currency debasament. If they don’t, we get a stronger dollar. Bitcoin is trading that.”
The coming couple of months could provide serious insight into Bitcoin’s macro trend based on the results of this single state’s Senate race.
Featured image from Unsplash. BTCUSD price data from TradingView.
