A famous Bitcoin bull named Max Keiser has recently decided to suggest that the current Bitcoin price rally was caused by the chaos that is happening in Europe during the elections of the European Union parliament. The elections were held over the weekend and, according to Keiser, Bitcoin was seen as a safe haven for the people who were afraid that the Euro might take a hit because of all the chaos related to the elections.
This role was originally taken by some other assets like the Japanese yen (JPY) or gold, but it looks like now Bitcoin is the hottest new options for investors looking to get away from the danger of political instability.
Bitcoin’s price is now at around $8,900 USD, a considerably high mark when you consider how it was low a few months ago (below $4,200 USD).
Pro-EU Parties Are Expected To Decline In Power, Could Affect Bitcoin
One of the main reasons for the fear of the investors is because some of the parties which are more aligned with the idea of keeping the European Union safe are now more fragmented than ever. Center-left (Democrats and Progressive Alliance of Socialists) and the center-right (European People’s Party) got most of the seats, but none of them will be the majority.
The nationalists, which are considered more dangerous, did not win the elections, at least, which was the most dangerous outcome for the union, however, the loss of strength in the moderate parties is scaring some investors.
So-called “euro skeptics” will have more power now because the two sides of the center will have to agree in order to move their agenda forward. This is seen by Keiser as the recipe for political chaos.
A Possible Correlation Between Bitcoin And Political Events
While the idea that Bitcoin’s price can be led by political events is not completely accepted within the community, as some people affirm that world events do not correlate with price, there are some hints that a relation between price and political events might actually exist.
Today, Max Keiser talked about how the election in Europe have affected the prices and, when the price of BTC was pumped to $8,000 USD, many people talked about how it was the negotiation of Brexit which made the prices go up. Other people even correlate the U. S.-China Trade War as one of the reasons for BTC to go up (or down, sometimes).
Some people believe that the trade war can harm both the U. S. and China’s fiat currency (the dollar and the yuan), which may also affect the markets. Barry Silbert, the CEO of the Digital Currency Group, is a believer that the trade war is having an effect on Bitcoin.
Despite all the talk of how Bitcoin is a “non-correlated asset” with the traditional financial stocks, this theory is starting to sound not so true after all.
- Source: First Appeared Here
- Published Time: 2019-05-27 20:22:51
The views and opinions expressed in the article Disruptive European Political Elections Are Assiting in the Latest Bitcoin Price Pump do not reflect that of 48coins, nor of its originally published source. Article does not constitute financial advice. Kindly proceed with caution and always do your own research.
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