Election Day pump? 4 reasons Bitcoin spiked 2% in 30 minutes

The price of Bitcoin rose by 2% in just 30 minutes right as the United States' stock market rang its opening bell on Nov. 3.

The four reasons that likely led to a Bitcoin uptrend in such a short period are the election, a stocks upsurge, negative funding and rising exchange outflows.

The election is positive for Bitcoin for two reasons.

If Trump wins, Lee said stocks might see even a bigger rally of 15% to 17%. Meanwhile, Goldman Sachs issued a note earlier this month suggesting that "a blue wave would likely prompt us to upgrade our forecasts." Although experts are divided on the potential impact of the election on the stock market, it seems both scenarios would be beneficial for BTC by the year's end.

As the Dow Jones saw a 350-point upsurge in the pre-market, BTC price surged from around $13,500 to $13,730 within 30 minutes.

Although Bitcoin has shown dwindling correlation with U.S. stocks in recent weeks, during an uptrend, BTC and stocks are likely to increase in tandem.

While Bitcoin is viewed as a store of value, both BTC and stocks are still risk-on assets.

A rising stock market could mean the markets are ambivalent about the eventual winner of the election.

According to the data from CryptoQuant, an on-chain market analysis firm, exchange outflows just recorded the biggest spike this year at roughly 30,000 BTC. Traders deposit Bitcoin into exchanges when they want to sell their holdings.

The combining factors of a short squeeze, election uncertainty, a stock market uptrend and rising exchange outflows contributed to the sudden BTC price spike.