Bitcoin Price Watch; Playing The Unpredictable Response
Here’s a look at what we are focusing on in the bitcoin price this morning.
In the immediate aftermath of the election in the US, global markets responded just as analysts expected in the event of a Trump win – they declined. Almost immediately, however, once the decline tapered off, we saw a recovery, and pretty much across the board, markets closed up or flat, or if down, only by a small amount, on the day’s open.
This is a sign that sentiment may not be as adversely affected by what I guess we could call a pretty solid black swan event – not in this instance, at least. This, in turn, isn’t great for bitcoin. Many behind the scenes (and most out in front) were sort of hoping that a situation such as the one in which the US now finds itself would trigger some degree of risk of sentiment. Risk off sentiment generally translates to a flight to precious metals, and to date, bitcoin has somewhat correlated with this flight. Risk off, bitcoin goes up. It’s a fringe response, of course, and over time the assumption is that the threshold that defines this fringe will shift farther and farther towards the mainstream, but there’s generally a flight nonetheless.
This post was published at NewsBTC on November 10, 2016.