After maintaining a strong momentum for three straight days, Bitcoin price has established a new all-time high at $1,920. This was triggered by the US Bitcoin exchange market and the rise in demand for Bitcoin amid severe political uncertainty.
Earlier today, Cointelegraph reported that US stock exchanges, bonds and assets plunged amidst troubles surrounding the Trump administration.
Evercore ISI Executive Dennis DeBusschere specifically emphasized the Trump-Comey memo incident as the catalyst for market turbulence.
Bloomberg also reported that the Democratic party has started talks about impeachment, which led to a further decline in the Dow Jones Industrial Average, which fell by more than 370 points yesterday.
“What has been setting in over the course of the day is that political uncertainty is something that’s likely going to be with us for a significant amount of time. We may be looking at a higher volatility backdrop with a trending lower market for the next couple of months,” said DeBusschere.
Cointelegraph also reported that the US Bitcoin exchange market surpassed the Japanese Bitcoin exchange market by trading volume, which hasn’t happened since 12 months ago.
Japan has maintained complete dominance over the global Bitcoin exchange market. The explosive surge in demand for Bitcoin from US-based investors and traders allowed its exchange market to surpass that of Japan for a brief period of time.
The demand for Bitcoin in the US is rapidly increasing due to the wide regard of Bitcoin as a safe haven asset, alongside gold. In fact, prominent gold investors including Mike Maloney have urged investor and traders to hold Bitcoin in their portfolios as a mandatory asset to avoid market turbulence and economic certainty.
Speaking of Bitcoin’s high liquidity, transportability and decentralized nature, Maloney stated:
I don’t own a lot of cryptocurrencies but I think it is something that is necessary to be prepared because if the monetary system fails, you’ll be able to do transactions right away with other people and you can do them over long distances. You can do them over the Internet just like you pay with your credit card today.”
Sustained momentum
The upward trend and momentum of Bitcoin price could be sustained and stabilized if the demand for Bitcoin in the US and Japanese Bitcoin exchange markets continue to increase. It is evident that the demand for Bitcoin in the Japanese exchange market is rising rapidly simply due to its price. Bitcoin is being traded at a high premium of $1,975, a price that is more than $100 higher than that of the US and European exchange markets.
As DeBusschere explained, the US stock markets and the economy could struggle in recovering within the next few months, which is an enough time frame for Bitcoin price to stabilize and maintain its momentum.
However, some investors including Tony Roth, chief investment officer at Wilmington Trust, stated that if the economy holds up, Trump troubles and other political incidents will be absorbed to recover market stability.
"Even if we have a big, prolonged mess in Washington, it's not going to necessarily hurt the economy. As long as the economy holds up, I think the market is going to brush off what is going on in Washington,” said Roth.