Stock Market Responds Positively to President Joe Biden's Inauguration, but what about Bitcoin and Ethereum?
A new governance era has unfolded in America with the inauguration of Joe Biden as the 46th US President. Along with the official welcoming into of President Biden, the entire stock market has been responding positively.
The major stock market indices recorded new daily highs with Dow Jones Industrial Average surging 0.83%, the S&P 500 gaining 1.39% and the tech-focused Nasdaq Composite surged by 1.97% to $13,457.25.
While the growth of these indices at yesterday's close of trading showed overall strength in the market, the cryptocurrency markets, led by major cryptocurrencies Bitcoin (BTC) and Ethereum (ETH), have failed to record a complementary growth.
According to CoinMarketCap, Bitcoin is down 1.83% over the past 24 hours, continuing its downward run as indicated by the 7.93% dip over the past week. Although Ethereum is down by 3.16% to trade at roughly $1,310, dampening hopes of surpassing its recent all-time high (ATH) price of $1,400, the second-biggest cryptocurrency is better off compared to Bitcoin, as it has undergone a weekly gain of16.95%.
The US stock market, in comparison, has seen impressive runs in the build-up to the inauguration ceremony. These rallies were fueled by major market players hoping to benefit from the COVID-19 stimulus package deals the new President will implement, with trillions of dollars expected to be injected into the economy to counter the damage caused by the pandemic.
Crypto markets are also bound to benefit from the rollout of the stimulus packages as the excess money printing of the US dollar will be a boost to both institutional and retail investors who will want to preserve their wealth and hedge against the impending inflation that is set to be ushered in.
At a price of $34,383 per coin, Bitcoin is way below its all-time high price of approximately $42,000 but expectations remain bullish that the Biden presidency will bring long-term growth to Bitcoin and the cryptocurrency ecosystem as a whole.
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Bitcoin Price Sinks Below Critical Level as Joe Biden Officially Inaugurated as 46th US President, What's Next for BTC?