Donald Trump's Victory Pushes Up Digital Currency Bitcoin
US stock futures have reacted negatively to Donald Trump's victory. In the same time bitcoin prices have steadily risen since the counting of votes in the US presidential race began, climbing more than 3 percent.
The price of bitcoin is hovering around $737 after rising from a low of $709 when polls in the Eastern US began to close, according to the CoinDesk USD Bitcoin Price Index. CNY markets are up 2.4%, reaching ¥4,959.11 at press time.
Charles Hayter, CEO and founder of Crypto Compare, said that the price is rising on safe-haven demand in reaction to the uncertainty created as a result of Trump's victory. He said that bitcoin is acting as a form of digital gold and correlating strongly with the commodity: when there is uncertainty safe haven assets see a boost. He also state the weakening dollar may have added to the rise, but the digital currency is also higher when priced in other currencies like the Chinese yuan, sterling and the euro.
Pundits threw assumption like it's perhaps the unique qualities as well as the accessibility of the digital currency markets that will perhaps help them become more interesting to mainstream investors.
Indeed Trump didn’t announce much support to bitcoin during his recent campaigns. However, he has cast projected his persona as a Washington outsider, which can boost uncertainty and finally lead to an increased interest in alternative assets.
This whole series of events impact a broader tech sector globally as well, the morning after Trump’s presidential victory sent stock futures collapsing, major tech stocks appear to be dropping on Wall Street during an otherwise surprisingly steady opening of post-election trade. Even though it’s not that bad, the major names in the red included Apple, Alphabet, Amazon, eBay, Facebook, IBM, Intel, Microsoft, Netflix and others.