Bitcoin, Ether, XRP and Co.: Nervous Weekend Expected Due to Trump
Cryptocurrency investors should be prepared for a potentially bumpy weekend. On Friday, ex-US President Donald Trump was transferred to a detention facility before his court hearing in Georgia. Trump immediately managed to tweet a mugshot of himself. On social media, the situation is already being compared to the chaotic days in the Washington D.C. capital on January 6, 2021. Back then, there were tumultuous demonstrations following allegedly falsified election results.
Traders in the U.S. are now afraid that history might repeat itself. Should Trump call on his supporters to take action, or should one of the parties get out of control, one is prepared for a turbulent weekend in the U.S. – including for the crypto market.
Historically Highly Correlated: Trump News and Bitcoin Prices
The stock market is estimated to have anticipated this as Donald Trump’s legal problems became a major news theme before the 2016 election, having an impact on the price of Bitcoin. Online, this effect fizzled out quickly; but the upcoming weekend, for which Trump has signaled some sort of hope, might nevertheless be relevant.
More U.S. Trouble and China as Headwind
In addition, several circuit breakers meant to prevent significant price drops on the stock market are experiencing technical issues. This affects the Nasdaq, which comprises tech giants like Apple or Amazon. One could therefore prepare for price movements by the hour, especially since China has been adding pressure on the financial market. Negative developments in China, particularly the renewed property crisis, have emphasized concerns.
The resulting insecurity in the market could counteract the stabilization observed in Bitcoin prices in recent days. After the cryptocurrency briefly snuck past the $26,000 mark on Thursday night, prices are currently set at just under that mark.
Conclusion
Considering the current geopolitical and economic conditions, it won’t take much imagination to predict what could come next. It is wise to keep a close watch on the headlines and possibly adjust one’s investment strategy accordingly.
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