Bitcoin in politics: market sensitivity
With the recent variations of the crypto-market in general, a possible explanation of the reason why prices behave in this way is sought.
If we remember, a few weeks ago the crypto market was experiencing what we know as a rally, implying that prices rose and fell steadily and rapidly, with variations in magnitudes such as a rise of 10% in the morning, but drops of 15 % at night. You can see our articles about it in the Top of the week: Rally.
This time we are not in a rally as such, given that the speed with which prices change is not similar to that week, however, in recent days it has been observed that considerable variations have occurred in the crypto market, so which we seek a possible explanation of this situation.
To be able to carry out this explanation, we must first state that we will focus on the Bitcoin price, assuming that it is the anchor of the crypto market in general, implying that if it goes up or down, it drags the value of the other cryptocurrencies with it.
Knowing this, we can then analyze the recent events associated with the cryptocurrency, using as input the article “The price is triggered by statements by the US Secretary of the Treasury. on Bitcoin and Libra «, allowing to highlight two of the possible causes of the variations of currency, politics and Libra.
With politics, we are referring to the fact that in the last few days various political figures of international importance, such as the President of the United States, have commented on cryptocurrencies, as reflected in our article “President Trump states that” he is not a fanatic of cryptocurrencies »», to which our well-known John replied «McAfee responds to Trump by ensuring that attempts to regulate cryptocurrencies are« condemned »».
Although politicians do not have a direct impact with the crypto market, they indirectly affect the influence of users’ trust, similar to when a regulator comments on a crypto,
The other important event that is happening is the launch of Libra, which attracted attention to an apparent negative attraction to the currency, there are people who associate the token of Libra with Bitcoin, for which, they are worried that the regulations imposed on them The Facebook currency affects BTC in some way.
In both cases, the basis of the changes is the trust of the people, remembering that it is the main foundation by which the crypto market exists. Experts do not estimate how long the crypto market will remain that sensitive, since there is a possibility that the issue with Libra ends after its hearing or its launch. With respect to politics, there is also the possibility that it ends with the issue of Libra.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.