Bitcoin Price May Hit $15,000 After 2020 Presidential Election: Here's Why

The price of Bitcoin may continue to increase to $15,000 after the U.S presidential election, a new report suggests.

According to a report from Stack Funds, a cryptocurrency index fund provider, the current market cap vs. realized cap ratio (MVRV ratio) is at 1.8, which, if a trendline is followed between the current price and the bottom price in late 2018, an upward trend can be observed that has a similar trajectory as the one that appeared in 2017.

Based on the MVRV ratio of 1.8, Stack Funds said a retest of 2.5 could be in play. This number was last hit in 2019, when Bitcoin hit $13,800. Bitcoin's price could be put above $15,000 after the November elections if the 2.5 MVRV ratio is hit, Stack Funds said.

Created by David Puell and Murad Mahmudov, MVRV looked at the market cap against the realized cap, another indicator created by CoinMetrics. MVRV was devised to provide a more accurate valuation of Bitcoin other than just relying on the market cap, Cointelegraph said.

Bitcoin closed Thursday at $11,511, maintaining the range where it was in the last four days. The benchmark cryptocurrency has weathered many bearish news in the last few weeks, including the Justice Department's crackdown on BitMEX and the banning of cryptocurrency derivatives in the U.K. Bitcoin was at $11,344 at the time of this writing, down from the previous day's price, as Malta-based cryptocurrency exchange OKEx suspended withdrawals because it is currently cooperating with an ongoing investigation.

Despite the bearish news, Bitcoin barely moved and even after the BitMEX indictment, the benchmark cryptocurrency increased to above $11,000. Square, the fintech company of Bitcoin advocate Jack Dorsey, announced that it has invested $50 million into Bitcoin. On Oct. 13, Stone Ridge Holdings Group announced it is holding 10,000 BTC through its subsidiary New York Digital Investment Group (NYDIG), and called it its primary treasury reserve asset.