Bitcoin and traditional market investors are gearing up for another crash, as the U.S. presidential election fuels uncertainty and COVID-19 cases continue to rise
Bitcoin, stocks and commodities are plummeting as the number of coronavirus cases continues to rise and the impending U.S. presidential election brings fear to the market. Meanwhile, the world mourned the death of Supreme Court judge Ruth Bader Ginsburg. She was a respected feminist and a thought leader in jurisprudence. However, a letter to his granddaughter increased the controversial presidential election between President Donald Trump and nominee Joe Biden:
“My most fervent wish is not to be replaced until a new president is installed,” he said.
The Republican-controlled Senate seems adamant about pushing for another judge, raising concerns that the lifelong position will influence future Supreme Court decisions in favor of conservative policies. Democrats are pushing to fill the vacancy after the presidential election.
The Volatility Index (VIX) responded violently to the situation. The Chicago Board Options Exchange VIX is a measure of the volatility implied in the S&P 500.
It rose above $ 30 for the second time this month, as markets continue to fall. In times of lull, the VIX index is usually traded below $ 20, while $ 30 acts as the upper limit for global shock events, such as wars or terrorist attacks.
CBOE VIX Index for S&P 500. Source: Ycharts
These increases in the VIX index no longer serve as an indicator of sound purchase. The COVID-19 pandemic further increased market uncertainty, with VIX trading at $ 70 – prices similar to those of the 2008 financial crisis.
As uncertainty increases in global stock markets, Bitcoin tends to move in conjunction with stocks.