Friday, 19 May 2017

Bitcoin Reacts to Trump Troubles Lead,US Uncertainty as it Surpasses ₦709K ($1,820)

 After peaking at ₦709K ($1,820) Bitcoin price stabilized in the ₦709K ($1,820) region earlier on May 18. The recent surge of Bitcoin price is apparently largely afflicted with the economic uncertainty of the US, due to troubles surrounding the Trump administration.

Donald Trump sent jitters down the spine of the world's political and financial elite from the day of his inauguration when Bitcoin price immediately shot upward.

Bloomberg reported that major US stock indexes had their worst session in eight months while world's 500 most valuable billionaires have lost $35 bln because of the Trump administration's turmoil and the US economy's underwhelming performance.
Amazon's Jeff Bezos and Facebook's Mark Zuckerberg shed $3.7 bln because the Dow Jones Industrial Average dropped by a lot more than 370 points.


During an interview with Bloomberg, Evercore ISI Executive Dennis DeBusschere stated:
“What's been setting in on the length of the day is that political uncertainty is something that's likely to be responsible for an important quantity of time. We might be taking a look at a greater volatility backdrop with a trending lower market for the following number of months.”
Amid the economic and financial turmoil, investors have begun to guard their assets and wealth with safe haven assets such as for example gold and Bitcoin. While gold has gained around 1.9 percent, Bitcoin price recorded an eight percent increase to surpass the ₦709K ($1,820) mark, reaching nearer to the present all-time high price established at ₦720K ($1,868)

Safe haven

Recently, BuyBitcoinsInNigeria reported that gold hasn't met the description of a secure haven asset in the last seven years. Being considered as a secure haven asset for centuries, since 2010 gold hasn't managed to steadfastly keep up its value nor demonstrate an increase. As BuyBitcoinsInNigeria noted, a  ₦3,1Million ($10K) investment in gold back 2010 could have generated a lack of ₦7800 ($20), while a ₦3,1Million ($10K) investment in Bitcoin could have generated a net gain of ₦63.2B  ($200 mln)

Hence, investors have started initially to depend on Bitcoin, which will be regarded as being digital gold and a settlement network, in order to avoid market instability and economic uncertainty. As DeBusschere noted, the US market will likely struggle to recoup through the next few months. If that's the case, Bitcoin price probably will maintain its upward trend and potentially set new all-time highs in the upcoming months.

The rise in demand toward Bitcoin in the US is evident because the US Bitcoin exchange market surpassed the Japanese Bitcoin exchange market for first time in 2017 when it comes to trading volume.

During the time of writing, Japan has reclaimed its position because the world's largest Bitcoin exchange market with over 37 percent of industry share.

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