Bitcoin Keeps Up Momentum As The World Prepares For President Trump

The price of bitcoin increased by over 30% following the news that the next president of the United States would be the highly controversial and often divisive Donald Trump. This was an unexpected result for the market and if there’s one thing that never goes down well with the markets, it’s a surprise. Perianne Boring, the founder and president of the Chamber of Digital Commerce, said in an email that Dow futures plummeted the night of the election; in reference to the markets for instruments that are to be traded when the markets are closed because they are based on prices in the near future.

 

Following the election the markets dropped by up 750 points, but that’s not all, as volatility would soon enter the frame. The markets experienced a lot of swings during Election Day, but things did eventually level out. The price of bitcoin, however, was up during Election Day, which certainly caught some traders off guard. The overall gain for the cryptocurrency was 3%, based upon figures posted the week prior. Considering just how well bitcoin has performed, it appears that many experts have been quick to address the matter.

 

Boring joined the discussion by saying that uncertainty and volatility in the market will usually lead to investors choosing decentralised assets and currencies. The same thing that happened with bitcoin often happens with gold, especially during times of surprise for the market. Gold was also riding high post-Trump win, but it didn’t quite reach the peak that it reached a few days before the election, unlike bitcoin, which reached heights unseen since early summer 2016.

 

The current CEO of Genesis Global Trading (which is a member of the Digital Trading Group), Michael Moro also spoke about the matter to the Observer. He said that Genesis noticed that there was some activity from institutional investors that hadn’t traded with Genesis for a few months. His theory is that people invested in bitcoin for the long-term in case Trump won and they could sell it on for a profit in the equity market. Given the price increase of bitcoin it was definitely a wise choice.

 

The CEO of Blockgeeks Ameer Rosic added that there were a few reasons for the surge. The primary reason is that people don’t trust the government. The other reason is uncertainty about the future. The more unknown the future is the more people will be investing in bitcoin and the more it will be worth. People are still unsure about what the future holds for America and will likely be so until the Trump presidency really begins in January. That kind of uncertainty is bad for the people, but it’s proving to be good for cryptocurrencies.

 

Bitcoin wasn’t the only cryptocurrency enjoying a surge in price, even if it did see the most drastic price
increase. All five of the major cryptocurrencies experienced some growth as a result of the outcome of the election. Either which way you look at the situation, it appears that bitcoin is going to carry additional weight when Trump becomes the new leader of the free world.

 

Spreadbetting, CFD trading and Forex are leveraged. This means they can result in losses exceeding your original deposit. Ensure you understand the risks, seek independent financial advice if necessary. The value of shares and the income from them may go down as well as up. Nothing on this website constitutes a solicitation or recommendation to enter into any security or investment.

 

Alexander Bowring is a London based writer and a Southampton Solent University Screenwriting graduate. He has worked alongside TV personality and Telegraph feature writer Alison Cork, whilst also having produced content for ITV, This Morning, Canvas8, Who’s Jack, Alison at Home, and Bonallack & Bishop Solicitors. Alexander also has a keen interest in investments.

 

 

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