How governments dey influence Bitcoin Prices

[VivaMan]

Governments actions dey strongly affect Bitcoin prices because most investors dey quickly react to political news.

Now!
I want to outline the ways way governments dey affect Bitcoin.
1. Regulation and laws

As governments just introduced new crypto laws Bitcoin prices often move sharply.
Me I noticed say , positive regulations go fit increase investors hope and mindset .Restricting or bans go make investors run away .Because high tax on this people go really discourage investors, while clear taxes go attract institutional investment.

2. Tax Policies

Taxes on crypto trading dey really influence how investors invest.
Note that high-charges go really discourage most investors. That's why cleared tax rule's will attract institutional investment.

3. Interest rates and Inflation

The central bank decisions dey really affect Bitcoin demand. Expecially during inflation, some investors buys Bitcoin as a hedge.
Higher interest rates go really reduce investment in risky assets like crypto.
4. Government Adopting

Government Adopting,  go really boosting Bitcoin legitimacy. For example El Salvador adopting Bitcoin, it increases global attention.
You no say restrictions from China previously caused major market declines.
5. Political Stability

For countries way dey face economic crises, currencies, citizens go fit turn to Bitcoin for protection of their wealth.

[Joy_learns_crypto]

The main thing wey Dey influence bitcoin price na the deman and supply chain. And before any government go fit influence the bitcoin demand and supply chain that country need to be powerful no be all government go fit cause noticeable effect for the bitcoin deman and supply chain for example during the US election and the emergence to victory of Donald Trump as the president there was positive effect for the bitcoin demand and the price went up, also you made mention of china too which I concede with.

[Asiska02]

The main thing wey Dey influence bitcoin price na the deman and supply chain. And before any government go fit influence the bitcoin demand and supply chain that country need to be powerful no be all government go fit cause noticeable effect for the bitcoin deman and supply chain for example during the US election and the emergence to victory of Donald Trump as the president there was positive effect for the bitcoin demand and the price went up, also you made mention of china too which I concede with.

You dey really on point because demand and supply na him be the main effect on Bitcoin prices. Government also they affect the price of Bitcoin but no be all government fit affect the price of Bitcoin. For example, even if countries like Nigeria approve the legal tender of Bitcoin, e no go really move the market and the effect go dey minimal compare to when countries like Russia or China go enact the same law, e go really push the price up wella and go dey very noticeable. Na the way the economy of your country strong for global financial market, na so e fit get effect for the price of bitcoin.

[Hypnotizer]

Well as the above replies have mentioned, the main thing that influence Bitcoin prices are Demand and Supply but what you’ve listed above have some kinda indirect influence on the prices because some Governments Actions might either trigger more demand through increased Adoption or more supply when many wants to sell their holdings because of the Government regulations.

The above actions you mentioned doesn’t strongly affect Bitcoin prices, rather they indirectly affect the market because of the perception and reactions from the investors and holders themselves.

[Kelward]

The main thing wey Dey influence bitcoin price na the deman and supply chain. And before any government go fit influence the bitcoin demand and supply chain that country need to be powerful no be all government go fit cause noticeable effect for the bitcoin deman and supply chain for example during the US election and the emergence to victory of Donald Trump as the president there was positive effect for the bitcoin demand and the price went up, also you made mention of china too which I concede with.

Na true you talk say na basically demand and supply de influence Bitcoin price and at di same time na something de prompt massive demand and supply to di extent wey e go affect price noticably. No be every country get dat type of influence to impact on di price of Bitcoin, government policy or decision of a country like USA or China, go cause noticable shift for Bitcoin price but if a country like Nigeria, make similar move e no go really impact price movement like those two countries.

Aside from dis strong countries policies and pronouncements wey fit to affect di demand and supply of Bitcoin either positively or negatively e get other fundamentals wey fit to affect price sharply like wars between strong countries and natural disasters. Bitcoin de basically react to news wey get a global impact, if na stories and happenings for countries wey no get mouth for global matters e no go impact Bitcoin price.

[Son Of Blockchain (SOB)]

The main thing wey Dey influence bitcoin price na the deman and supply chain. And before any government go fit influence the bitcoin demand and supply chain that country need to be powerful no be all government go fit cause noticeable effect for the bitcoin deman and supply chain for example during the US election and the emergence to victory of Donald Trump as the president there was positive effect for the bitcoin demand and the price went up, also you made mention of china too which I concede with.

Na true you talk, other things go just influences the price for a while then eh go experience small corrections go back to normal but demand and supply na wetin dey control the price of Bitcoin so na em get major influence for where Bitcoin dey, no be say government even get direct influence.
 Na their actions dey lead people to make unnecessary decisions like dumping whenever dia government set yeye policies against Bitcoin, sha people wey dey make that kind mistake na traders cause long-term holders no suppose panic for that kind matter since no Bitcoin unfriendly government go last forever but Bitcoin get potential to thrive past their tenures.

[Freeveto]

This is not hidden stuff; it's crystal clear that the government, through its agencies, for example, the US Federal Reserve and the SEC, etc., can make or put policies in place that can affect the global market or the price of a particular asset or assets, such as raising or lowering the interest rate, sanctions, tariffs, and taxes, and through its regulations, influence the prices of assets.

[B-BossMan]

Op, the thing is weather with Government regulations or not bitcoin will be as it is, the only investors that got fear whenever Government go with their own regulations or whatever is the either the new investors or the those that invested for short-term gains.

Aside that, bitcoin na something wey be say all proce must fluctuate, e go either go up and sometimes come down, na him nature be that so if na regulations really investors no dey fear regulations no matter how be, the thing be say, as investors just keep on controlling wetin you dey do, the thing be say, you no fit control wetin Government dey do, but you can control your own cashflow and emergency funds, but he go better make person just dey invest with discretionary income. Moreover if person be real investors even if Government tends to ban bitcoin for thier Country, there's no way you will fear, so just invest what you can afford to lose with your discretionary income.

[Miles2006]

I doubt if the government have a positive impact when it comes to bitcoin, bitcoin has been doing well even before the government knew about it or rather the governments are trying to shutdown bitcoin but, even with the effort bitcoin is doing well, to an extend they’re trying to implement all kinds of rule although the case might be reverse with time after bitcoin price increase gradually because they’re only after profit.
Government don’t influence bitcoin price, I understand when government try to make a speech about bitcoin or other digital currency there’s a kind of hype either positive or negative but, this is not enough to influence the price rather economic demand and supply.

[Agbamoni]

Tax Policies, Interest Rates, and Inflation are the real reasons why the government can easily influence Bitcoin prices. Without steady inflation, buyers/sellers wont tamper their coins to meet their basic needs. Tax policies also have a big influence because, without the crypto platforms completing their own side of the bargain to operate in the region, the government will ban or restrict them. And as for interest rate, it is a global thing. Merchange, which does P2P, sometimes destroys the market by adding high interest in transactions.

[CryptoHeadlineNews]

2. Tax Policies

Taxes on crypto trading dey really influence how investors invest.
Note that high-charges go really discourage most investors. That's why cleared tax rule's will attract institutional investment.

Bitcoin is a decentralized digital currency, which both government or it's central banks do not have control over it. So when it comes to the issue about taxation, this can only be done when you uses a centralized exchange for your trading or holding your Bitcoin investment. But for those who uses a private wallet where hold it's private keys and have full control over it, these people have no fear if government implement a tax system crypto exchanges or not. However, when it comes to the usage of crypto in Nigeria, the anticipated tax that was claim to be implemented by the Nigerian government has in no way affected the number of Bitcoin that invest in it. Because if possible, the number have doubled, due to this administration failed attempts to remedy solution to constant inflation of our Naira fiat currency.