The American election has reached its verdict. Joe Biden is the next President of the United States. On January 20, 2021, it is Joe Biden who will take Donald Trump’s place in the White House. The days following the election were more than uncertain.

Because of the time, it took to count the absentee ballots in several swing states, Donald Trump was first given a clear lead in Georgia, Pennsylvania, Michigan, Wisconsin, and Arizona.

This was the scenario that many experts had been considering for several weeks. Since then, Donald Trump has attempted a poker game by asking for a halt to the counting of votes so that the Supreme Court can proclaim him the winner of this presidential election in 2020.

This bluff betrayed Donald Trump’s nervousness as he felt defeat was coming.

Fortunately, the counting of votes continued and the democratic process was able to go through to its conclusion. By November 7, 2020, Joe Biden had won enough electoral votes to be officially declared the winner of the U.S. presidential election of 2020.

While Donald Trump has still not conceded defeat, the remedies he is considering will not change that. Joe Biden will be the next President of the United States no matter what.

Donald Trump was a staunch opponent of Bitcoin

For the Bitcoiners, it is amusing to note that the man who violently criticized Bitcoin in July 2019 and then asked his administration to try to put an end to this revolutionary system, is suffering a humiliating defeat.

If you don’t know what I’m talking about, take a look at this tweet from Donald Trump:

Sixteen months after this tweet, Donald Trump is sanctioned by the American people. One would think that all those who refuse to take the Bitcoin Revolution seriously are doomed to lose the trust of the people sooner or later.

Now that we know that Joe Biden is the next President of the United States. Everyone has only one question on their lips:

What will be the impact of Joe Biden’s election on the Bitcoin price in the coming months?

The first thing I would like to say is that the future of Bitcoin does not depend on the outcome of an election, even if it is the U.S. presidential election.

Bitcoin is here to stay, and its long-term future will not change because Joe Biden is elected rather than Donald Trump. In the short term, however, the election of Joe Biden is likely to accelerate the Bitcoin price increase.

I should point out that Joe Biden has never officially stated his position on Bitcoin. It is unclear whether he is opposed to Bitcoin or in favor of Bitcoin. But, being a progressive person who listens to the youth, it is likely that Joe Biden is much more open to the idea of Bitcoin than Donald Trump is.

Currently, I see four major things that should boost the Bitcoin price during Joe Biden’s presidency.

A regulation favorable to Bitcoin

In the face of the great monetary inflation we have been experiencing for several months, Bitcoin has become a must-have option for many institutional investors. Now, big companies are coming to the world of Bitcoin, such as MicroStrategy and Square.

PayPal has even announced its entry into the Bitcoin world as of the beginning of 2021.

In the summer of 2020, the U.S. banking regulator also gave the green light to U.S. banks to buy and hold Bitcoin for their customers.

The mentality around Bitcoin changed at a rapid pace during the year 2020. All that remains is to define a clearer regulation at the federal level in the United States. Under Donald Trump’s presidency, this seemed impossible.

With Joe Biden, it seems all the more possible since there have been more and more rumors in recent hours that Joe Biden is expected to tap former derivatives market regulator Gary Gensler to advise on a transition plan for the financial industry oversight. If confirmed, this news would be significant since Gary Gensler is known to be a Bitcoin supporter.

Seeing Gary Gensler working with the Biden administration would therefore be a positive thing for Bitcoin.

Regulation favorable to Bitcoin would trigger a mass influx of retail investors into the Bitcoin world. Such an influx would necessarily cause the Bitcoin price to skyrocket afterward since the Bitcoin supply is hard-capped at 21 million units no matter what happens.

A new stimulus plan for the U.S. Economy

The American economy has been recovering since the end of the summer of 2020. However, the second wave of Coronavirus is reaching the United States, while millions of poor Americans have still not recovered from the first wave.

The first stimulus that was decided by the Trump administration in April 2020 was not enough. It has mainly benefited the richest, as shown by the explosion of the wealth of American billionaires since April 2020.

Their combined wealth has thus increased by nearly $500 billion over the period, while the velocity of the M2 Money Stock has reached its lowest level since the 1940s.

The money injected into the monetary and financial system has remained in the hands of the richest.

Just before the American presidential election, October 2020 was the scene of clashes between Democrats and Republicans on the amount to be allocated for a second stimulus. Republicans explained that with the recovery of the U.S. economy, $800 billion to $1.6 trillion was sufficient.

The Democrats wanted a more ambitious plan and were counting on more than $2.2 trillion.

No agreement could be reached, and it will now be up to the Biden administration to agree with Mitch McConnell, who is the Senate Majority Leader. Unless the Senate switches to the Democratic side on January 5, 2021.

Indeed, a second-round will take place in Georgia with two seats in the key that will tip the Senate to one side or the other, and that will give more indication of the room for maneuver available to Joe Biden for the reforms that he wants to pass to unite and heal America.

No matter how much money is withheld, a second stimulus should come sooner or later. This will bring the U.S. public debt close to $30 trillion. Obviously, it will boost the Bitcoin price accordingly.

The Fed printing, even more, U.S. dollar out of thin air

Jerome Powell told during a Fed conference on November 5, 2020, that the U.S. central bank will continue its aggressive monetary policy in the coming months. The Fed is far from having exhausted its range of tools to support the American economy if we listen to what Jerome Powell says.

Jerome Powell also believes that the U.S. government and Congress must also act again with a new stimulus plan:

“I just would say that I think we’ll have a stronger recovery if we can just get some more fiscal support, when it’s appropriate… the size Congress thinks is appropriate”

— Jerome Powell

What Jerome Powell has just told us corresponds to the Fed’s secret code to tell us that the Bitcoin price will continue to rise sharply in the coming months and years.

The Fed, which has already surpassed BlackRock in 2020 as the world’s largest asset manager, will continue to increase its Balance Sheet in the coming months:

The U.S. government will be able to continue rising the U.S. public debt with the Fed’s blessing.

A rise in the stock market that could boost the Bitcoin price

As I write this, the U.S. stock market is just opening. At the opening, the Dow Jones literally took off, taking +5%:

Investors are particularly euphoric for two reasons:

1. Joe Biden’s victory is a good thing for the United States in the long run.

2. The Senate is expected to remain Republican, which will greatly limit the tax reforms that Joe Biden wants to pass as part of his program.

Many imagine that Joe Biden might be a “lame duck” president. He will be constantly prevented in his will to reform the United States by Mitch McConnell and a Senate that is more likely to remain in Republican hands in the eyes of the financial markets.

For several weeks now, the correlation between Bitcoin and the stock market has tended to decrease sharply.

Nevertheless, the euphoria that could be created on Wall Street if the Dow Jones rises above 30,000 points and continues to break records could spill over into the Bitcoin market.

This would also favor an increase in the Bitcoin price.

Conclusion

The election of Joe Biden as the next President of the United States is news that has been accepted by everyone except Donald Trump who is still in denial.

Last week, the Bitcoin world had welcomed this news since the Bitcoin price had jumped by +17% from $13.5K to nearly $16K.

As I have just explained in this story, it may well be that Joe Biden's presidency will be adding positive elements for an increase of the Bitcoin price in the months to come. A Bitcoin-friendly regulation would be the icing on the cake, but by then the Bitcoin Bull Run will probably have already started.

Some reading:

• Joe Biden Wants to Unite and Heal America, but How Is He Going to Do It? - Joe Biden wants to reconcile the two Americas.

• Don’t Pay for Bitcoin Trading Signals, Just Learn How to Decipher the Fed Secret Code: Think long term with Bitcoin.

• First Female Vice President of the US, Kamala Harris Symbolizes Hope for Millions of Women: The first, but certainly not the last.

• Stop Criticizing Bitcoin for What It Is Not, Learn to Appreciate Bitcoin for What It Does Best: Bitcoin simply does what it is supposed to do.