The Bitcoin course is moving closer and closer to the gold price. Earlier yesterday, the gold price reached its three-month high at 1,260 US dollars, while Bitcoin stood at about 1,170 US dollars at that time.
A report published at Forbes is the reason for the rising gold price in the growing uncertainty caused by Trump’s aggressive policy. Correspondingly, the rising Bitcoin course will be pushed to the presidency of Donald Trump’s. At least this is the view of the analyst Mark Bünger from Lux Research, who sees the last course movements of Bitcoin more influenced by Trump than by China.
The “trump” factor is not only weighted by private companies and analysts, but also by the US Federal Reserve Reserve, which Trump sees a higher probability of an early rate rise, as evidenced by Federal Open Market Committee documents.
In addition to American policy, the positive development of the Bitcoin course is mainly due to the stronger market penetration and acceptance. Miller Tabak’s investment rate, Mat Maley, said on CNBC (heading: Trading Nation), that bitcoin adoption will be the key price driver for Bitcoin in the medium to long term, so the gold price can be surpassed with this support.
The impulse from China is currently missing, as the Bitcoin exchanges are still paralyzed by the interventions of the Chinese central bank. Accordingly, it must be waited for them to take up so slowly.
The “ETF factor” and the uncertainty in France
The focus of the media attention on the new all-time high of Bitcoin is also the Winklevoss Bitcoin ETF or its approval decision on March 11th. If there were to be an admission, the capital would be driven into bitcoin market capitalization, had a positive effect on the bitcoin price. Not a few speculate on exactly this scenario and drive the course upwards.
An exchange-traded fund (ETF) (closely traded fund) is an investment fund traded on an exchange.
Political uncertainty comes particularly from France, more specifically from the right-wing populist Front National and its party chairman, Marine Le Pen. If Le Pen were to win in the presidential elections, this would seriously undermine the markets and also lead to positive impulses for bitcoin and gold.
If the Bitcoin course is going to be over the course of gold, then it is of a more symbolic nature than fundamental. Finally, Bitcoin is often compared to the precious metal gold, as both benefits from political crises and uncertainty.
Nevertheless, it must not be forgotten that the main reason for Bitcoin’s long-term success lies in its spread and acceptance, and not in its role as a curse currency, even if both, of course, correspond to each other.
Although political and economic crises help to drive the Bitcoin course further, in the long term, this is only a matter of factual and technological arguments, which lead to a spread and increase in demand by Bitcoin – a collapse of the world economy once excluded. As it says so beautifully: “Political stock exchanges have short legs.” – One aspect, one should not forget also with Bitcoin.