Bitcoin, the popular cryptocurrency is currently going strong. The cryptocurrency, whose price fell below the $1000 mark at the beginning on 2017 has recovered once again. And this time, for a change, the price rise has been attributed to the recent actions of President Donald Trump and not the Chinese market.
The increasing Bitcoin demand is a result of growing uncertainties in the global markets, driven by policy changes in the United States. As the new president continue to sign one executive order after another, the country’s governance itself is now up for speculation. Trump’s call for a wall between the United States and Mexico followed by talks about taxes on remittance between two countries has led some people to explore the use of bitcoin for cross-border fund transfers.
At the same time, the recent executive order banning immigrants from seven Middle Eastern nations, followed by announcements about potential changes to the visa regime has opened a whole new can of worms. The companies and individuals alike are worried about its possible implications and how it is going to affect them and their business.
Many people in the cryptocurrency community share the same opinion about the connection between Bitcoin price and Trump’s actions. The CEO of First Global, Gavin Smith also agrees with the popular opinion.
Explaining the connection between the two, he said,
“The uncertainty in the US caused by the sudden change in travel policies and exercising an “un-American” policy of limiting immigration based on someone’s belief system has caused a reaction in the market and a drop in confidence in the dollar.” Explaining the situation and its impact on the digital currency, “Trump is a loose cannon and people are beginning to believe he will act without regard for consequence. This has resulted in the rally of safe haven assets.”
It is not just Bitcoin’s price that is affected by Trump’s governance. Even Gold prices have increased by $20. As people try to safeguard their assets and investments from losing value, they are moving towards assets having inherent value, unconnected to conventional financial machinery. Gold has been the store of value for ages and Bitcoin, due to its properties is rightly referred to as the “Digital Gold.”
When asked about the impact of Chinese activity on Bitcoin price, Gavin said,
“Almost all of the price movement on the Chinese exchanges is based on speculation and therefore has little lasting impact on the price of bitcoin.”
President Donald Trump’s administrative practices have to become more predictable for the current situation to change. The developments in Europe, including Brexit and Italy’s potential exit from the EU, may drive the digital currency’s price further upwards.
Ref: FT | CNBC | Image: NewsBTC
