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Title: [2016-11-15]Here's why Trump's win boosted Bitcoin Post by: WishICanTurnBackTime on November 15, 2016, 10:49:33 AM Here's why Trump's win boosted Bitcoin As Trump’s electoral victory became clear, global markets plunged into volatility. Dow Jones stock futures dropped by 3.8% in premarket trading, S&P futures by 3% overnight, and Nasdaq futures by almost 5%. All major European indices dropped by 2%, on average. The price of bitcoin, however, surged around 4% to reach highs of $738.33 overnight. The cryptocurrency saw similar gains in June after the Brexit vote, suggesting that investors are increasingly turning to bitcoin in times of political and economic uncertainty. There are a number of reasons why bitcoin proves attractive in these circumstances: It’s an alternative asset. Alternative assets are non-traditional assets — other examples include precious metals and art. They typically do not move in the same direction as the stock market and therefore are popular with investors looking to diversify their portfolios. http://www.businessinsider.com.au/heres-why-trumps-win-boosted-bitcoin-2016-11 Title: Re: [2016-11-15]Here's why Trump's win boosted Bitcoin Post by: yayayo on November 15, 2016, 04:44:19 PM It's a pretty much pointless article based on common sense and poor research. What's worse, the article only examines the short-term effects of Trump's win, but entirely ignores the medium term developments. The article puts Bitcoin and gold into the same category, but doesn't mention that shortly after its rapid gains, gold dropped significantly below it's initial level while Bitcoin maintained a small gain.
The overall medium term market reaction wasn't comparable to that around the Brexit event. The short term movements could be very well explained by a pure surprise effect. The fact that gold and Bitcoin showed different movements afterwards, indicates that they likely have no significant correlation. That calls into question putting gold and Bitcoin into the same investment category. ya.ya.yo! Title: Re: [2016-11-15]Here's why Trump's win boosted Bitcoin Post by: Kprawn on November 15, 2016, 05:02:48 PM I just hope a small percentage of the people who bought bitcoins as a safe haven, were first time investors and even if they withdrawn it
afterwards.... they still got exposed to the technology. They will use bitcoin as a hedge against market turmoil and uncertainty. What worries me, is that the market corrected themselves quickly afterwards and the price decreased. Why did they extract their investment, before they had certainty of what is going to happen in the USA... ??? |