The week of November 2 to November 7, 2020, will be remembered as one of the most consequential in Bitcoin’s recent history. As the United States presidential election results unfolded over four agonizing days of vote counting, Bitcoin embarked on a relentless rally that pushed the world’s largest cryptocurrency past the $15,000 mark for the first time since January 2018.
TL;DR
- Bitcoin surged past $15,000 during election week, trading at approximately $14,833 on November 7
- Joe Biden was declared the winner of the US presidential election on November 7 after four days of counting
- PayPal’s October crypto announcement and MicroStrategy’s $425 million BTC purchase fueled institutional momentum
- Grayscale’s crypto assets tripled from $2.1 billion to $7 billion over 18 months
- Ethereum 2.0 deposit contract launched November 4, adding to bullish sentiment
Election Uncertainty Meets Crypto Momentum
The 2020 US presidential election was unlike any other. With a record number of mail-in ballots due to the COVID-19 pandemic, the results took days to materialize. Major news networks finally called the race for Joe Biden on Saturday, November 7, capping off a week that saw Bitcoin climb steadily from around $13,500 to above $15,000.
The election itself became a catalyst for Bitcoin’s price action. Investors seeking a hedge against political uncertainty and potential inflation from continued monetary easing turned to the cryptocurrency. The weakened US dollar, combined with expectations of further stimulus measures regardless of the winner, created a perfect environment for Bitcoin to thrive.
PayPal’s Crypto Entry Changes the Game
Just days before the election, PayPal sent shockwaves through the financial world by announcing it would enable its 346 million users to buy, sell, and hold cryptocurrencies directly on its platform. The payments giant partnered with Paxos, a regulated stablecoin issuer, to facilitate crypto trading. This was not merely a tech company experimenting with blockchain — this was one of the world’s largest payment processors throwing its weight behind digital assets.
Bitcoin responded immediately to the PayPal news, jumping roughly 5% on the announcement alone. But the real impact was psychological. If PayPal was willing to embrace crypto, the argument went, mass adoption was no longer a distant dream — it was unfolding in real time.
MicroStrategy Leads the Corporate Treasury Movement
Perhaps the most significant structural change in Bitcoin’s market dynamics during this period was the entry of corporate treasuries. Nasdaq-listed MicroStrategy made headlines in August 2020 when it announced the purchase of $250 million in Bitcoin as a treasury reserve asset. By September, the company had increased its holdings to $425 million. CEO Michael Saylor became one of Bitcoin’s most vocal corporate advocates, framing the cryptocurrency as a superior store of value to cash.
MicroStrategy’s move was not an isolated event. It signaled a broader shift in how institutions viewed Bitcoin. Grayscale Investments, the largest digital currency asset manager, saw its assets under management triple from $2.1 billion in May 2019 to $7 billion by September 2020. The institutional infrastructure was being built, and Bitcoin was benefiting from each new brick.
Ethereum 2.0 Deposit Contract Goes Live
While Bitcoin grabbed headlines with its price surge, Ethereum was making history of its own. On November 4, 2020, the Ethereum 2.0 deposit contract was officially deployed, marking the beginning of Ethereum’s long-awaited transition from proof-of-work to proof-of-stake. Within 40 hours, the contract attracted approximately $17 million in cryptocurrency. By the end of the first week, roughly 49,000 ETH had been deposited by validators eager to participate in the Beacon Chain launch.
Ethereum co-creator Vitalik Buterin himself deposited 3,200 ETH into the contract, a move widely interpreted as a vote of confidence in the network’s future. The Beacon Chain was targeted to launch on December 1, 2020, provided the deposit contract received the required 524,288 ETH. Staking rewards were projected at approximately 20% APY at launch, offering a compelling incentive for early participants.
Market Pullback Follows Election Certainty
Interestingly, Bitcoin’s rally took a brief pause once the election results were finalized. On November 8, the crypto market experienced a 3% pullback, with Bitcoin retreating from its weekly highs. The correction was attributed to profit-taking following a week of sustained gains. Market analysts noted that such pullbacks were healthy and consistent with Bitcoin’s broader uptrend.
Despite the temporary dip, the macro picture for Bitcoin remained overwhelmingly positive. The combination of institutional adoption, regulatory clarity from a Biden administration, and the Federal Reserve’s ongoing quantitative easing program all pointed toward continued upside for the cryptocurrency market.
Why This Matters
The week of November 2-7, 2020, represented a convergence of forces that would define the next phase of crypto market evolution. Bitcoin was no longer just a speculative asset traded by enthusiasts on exchanges. It was becoming a legitimate component of corporate treasury strategies, a hedge against monetary debasement, and a beneficiary of mainstream financial infrastructure through platforms like PayPal. The institutional dam had broken, and the flows were only beginning.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always do your own research before making investment decisions.
BTC pumping during election uncertainty while every other market was confused was peak Bitcoin moment
four days of vote counting and BTC just kept climbing past $15K for the first time since 2018 was surreal
institutional demand combined with election chaos was the perfect storm for Bitcoin