Trump's "madness" is the most favorable support for Bitcoin prices

February 7th news: Bitcoin enthusiasts are definitely not among those who have been scared off by Trump's series of crazy policies. On the contrary, Trump's "crazy" behavior may be a major positive factor for the Bitcoin market.

Recently, Bitcoin has started to strengthen again.

After falling below $1,000 at the beginning of this year, the international price of Bitcoin has shown signs of rebounding recently. At the end of last year, the activeness of Chinese Bitcoin investors caused the price of Bitcoin to break through $1,100. However, this time, the rise of Bitcoin will no longer be attributed to the Chinese market, but driven by the new policy of the new US President Donald Trump.

Bitcoin's recent price trend

Bitcoin price growth stems from US policy uncertainty

Regarding the connection between Bitcoin and Trump's policies, many people who follow the virtual currency hold the same view that the uncertainty brought about by Trump's policies will lead to an increase in demand for Bitcoin, thereby driving up Bitcoin prices.

Trump has signed controversial executive orders one after another since taking office. Although Trump had already "vaccinated" the market during the campaign, presidential campaign speeches are often not to be taken seriously. When everyone scoffed at Trump's remarks about "building a wall between the United States and Mexico", they did not expect that the wall would be put on the agenda so quickly.

Trump has recently signed a presidential order to build a wall on the border between the United States and Mexico, and plans to impose a 20% import tax on Mexico to finance the construction of the wall on the border between the United States and Mexico. The news immediately caused an uproar internationally. In addition, the Trump administration proposed to impose taxes on remittances between the two countries, which led some people to seek to use Bitcoin to achieve cross-border fund transfers.

When the panic was still not settled, Trump issued an executive order to ban immigrants from seven Middle Eastern countries from entering the United States, and announced that he would change the existing visa system in the United States. This will have a huge impact on both American companies and individuals. They began to worry about how these policies would affect their lives and business dealings. And concerns about this uncertainty prompted them to start looking for new safe-haven assets.

The US dollar is hit, and the value of digital currency is highlighted

The market's first reaction to the Trump administration's restrictive immigration policy was a decline in confidence in the US dollar.

The introduction of xenophobic policies not only caused panic among immigrants, especially Muslims, but also had an impact on the global tourism industry and talent flow. The bright economic prospects on the eve of Trump's inauguration are gone, and the market is full of pessimism. One result of this pessimism is the rebound of a series of safe-haven assets, including digital currencies.

Among these safe-haven assets, in addition to the price of Bitcoin, the price of gold has also entered an upward trend. According to Reuters, due to market concerns about the current political situation, the US dollar fell on Tuesday (February 7) and gold jumped 1% to its highest level in nearly three months.

Gold recent trend

When the dollar starts to depreciate, the most direct way for people to protect their assets is to shift their asset allocation from traditional financial institutions to more valuable safe-haven assets. Compared with other assets, gold has greater storage value, and Bitcoin is considered a digital currency with the attribute of "digital gold". Although it is unlikely to recreate the brilliant market at the end of last year, the future trend of Bitcoin is still relatively optimistic.

The price fluctuations in China's Bitcoin market are mainly caused by speculation, so after the central bank intervened, speculation no longer had a lasting impact on Bitcoin prices. In contrast, Trump's administrative practices have made the changes in the current political and economic environment more predictable - although the specific policies are full of uncertainty, conservatism and xenophobia will be the main theme for some time to come.

In addition, developments in Europe, including Brexit, elections in Germany and France, and Italy’s potential intention to leave the EU are also likely to drive the price of digital currencies further up.