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How the unrest in the US is affecting Bitcoin price

Cryptopolitan


TL;DR Breakdown

  • Unrest in the US is likely the reason behind the Bitcoin price hike.
  • Traders believe Bitcoin will see a hefty reversal.
  • Bitcoin price rises in unrests and the current hike is a likely bubble.

The value of cryptocurrencies lies in their perceived value. As consumers expect increases in prices, they buy more. The increased number of buyers shift the market’s control to buyers from sellers, which is when bullish momentum gains hold of the market. 

Bitcoin price started to gain traction in October of 2020 and the king has been enjoying a bull market streak ever since. Bitcoin broke its previous all-time high and continued on its upward trajectory. It does not look like the cryptocurrency will be slowing down anytime soon even though analysts keep predicting strong corrections; such are the norms in the cryptocurrency market.

Currently, Bitcoin can be seen hiking upwards, and the cryptocurrency is establishing new highs every day. At the time of writing, Bitcoin stands at $41,000, and $50,000 seems like a plausible target for now.  

Bitcoin price: Historical Trend and current unrest

The more logical option seems to be a sharp decline in Bitcoin price because of the unrest in the US, but Bitcoin has a history of going up during unrests. In May of last year, when riots broke out in the US, Bitcoin price had surged to $10k, and the riots did not appear to have influenced the Bitcoin price in any negative way.

In a similar fashion, during the 2020 US elections – in November – Bitcoin price peaked at $16,000; again, the election unrest had no negative impact on the cryptocurrency whatsoever. Two likely conclusions can be drawn from this: Firstly, Bitcoin is facing such major bullish pressure that political unrest does not have the power to affect it anymore, or secondly, Bitcoin thrives in unrest.