Bitcoin’s Falling With Trump News Is Both Good And Bad

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Bitcoin followers woke up to a busy morning. While the repercussions of the Bitmex case news continued, Donald Trump announced that he was caught in the coronavirus and the Bitcoin graphics were painted red. If Bitcoin, which has decreased by 4% in the last 24 hours, has been more affected by Trump’s statements than the Bitmex case; this can be both a good and a bad sign for the leading coin.

The lawsuit filed by the US government against the cryptocurrency exchange Bitmex and the ensuing arrest caused a bomb in the industry. Samuel Reed, one of the founders of the exchange, has been arrested and efforts to reach out to other founders are still ongoing.

Then he announced on social media that the US president Donald Trump and his wife were caught in coronavirus. Although some experts generally argue that both developments triggered the decline in the Bitcoin price, a certain segment of the cryptocurrency world was divided into two.

While some said that the heavy blow received by the futures exchange Bitmex affected the leader coin more, the other group argued that the news that the US president was infected with the virus was more effective.

“If Bitcoin Has Declined With The Trump News …”

Assuming that Donald Trump’s news of the coronavirus is the cause of the almost $ 500 drop in the price of bitcoin, this is actually a very positive development. Journalist Erkan Öz made statements emphasizing the importance of this issue. In a statement he made on his Twitter account, Bitcoin reacted strongly to Trump’s Covid instead of Bitmex case; interpreted it as the transition of more institutional investors to Bitcoin than in the past. According to Öz, this table; It may indicate that Bitcoin has started to take more place as reserves and collateral.

The Block Research Manager and journalist Larry Cermak also revealed the fall in the Bitcoin price after the Trump news with the graphics he shared on Twitter. Cermak also shared the gold chart to convey the performance of gold after the same news. Unlike gold Bitcoin, Trump has risen in a very positive response to the news.

Gold chart in ounce after Trump news

Bitcoin chart in dollar terms after Trump news

Bitcoin Is Not In A Safe Harbor Yet

The decline in the price of BTC with the public announcement of the positive coronavirus test of the US president and First Lady led to the question whether Bitcoin could be seen as a safe haven. Although this is interpreted as using Bitcoin more as collateral, this decline may push some investors to be cautious about Bitcoin.

Following Trump news, gold, one of the most reliable investment tools at the moment, performed very well, while Bitcoin’s loss of about 3% did not paint a good image for BTC. Although there are rumors that Bitcoin will compete with gold in the future and even replace gold as digital gold, market experts say Bitcoin is still among the more risky assets.


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