Course Bitcoin, like any other cryptocurrency (except tablconv) exposed to high levels of volatility. Jump of the value of digital assets is often due to changes in legislation, expansion of the customer base of virtual currency and many other factors. In this article we will look at how the US affects the exchange rate of Bitcoin.
The impact of the USA on the cryptocurrency market.
The US economy occupies a leading position in the global market, the share of America accounts for a quarter of global gross domestic product. Many us companies opened branches abroad, so for US the world market is of paramount importance. America's economy and world economy are interlinked, the weakening of the first leads to a crisis in the second and Vice versa.
The US has the potential to strengthen the market of cryptocurrency and Bitcoin in particular. Digital assets interest major new York and Chicago companies, however, business has fears for the future of virtual currencies. The US government tightens policy in relation to kriptonyte and strengthens control over the activities of the blockchain startups. This puts into question the development of digital assets on American soil.
According to statistics, about 8% (18 million people) of U.S. citizens to own cryptocurrency. We have no data on the number of coins of BTC in the wallets of Americans, however, we can assume that they store large amounts. Currently in circulation coins 17.4 million BTC. Unlike Russians, many Americans have purchased bitcoin at the dawn of its development, then Bitcoin was worth hundreds of times less than now, so the coins were bought in batches. Americans batterylaravale in their hands a large percentage of Bitcoin, so you can effectively use the schema dump and pumps.
Wall Street is manipulating the exchange rate of the cryptocurrency.
Employee Palm Beach Confidential Tick Tiwari has published a report that accused the company of wall Street manipulation Bitcoin. Tiwari said the media propaganda waged employees: during the interview, they deliberately discrediting digital assets and declare the imminent collapse of the cryptocurrency market to spread panic among investors and bring down the rate of coins.
According to Tiwari, the manipulation of the price of BTC began in December 2017 years after the launch of futures contracts. Companies on wall Street have developed a plan to reduce the cost of the asset and bring it to life throughout 2018. In confirmation of his words, Tiwari cites several facts:
- January 24, 2018 American trader George Soros has called Bitcoin a "bubble", the price of the coin within 2 weeks fell by 40%.
- 7 February 2018, Goldman Sachs published an article in which he stated that "the value of most altcoins will drop to 0". By the end of the month exchange rate of Bitcoin fell 27%.
- On November 12, the CEO of JP Morgan Jamie Dimon said that Bitcoin is a Ponzi scheme. BTC to the end of the month fell to 30%.
Interesting fact: the representatives of the companies on wall Street are criticizing cryptocurrencies, but this does not prevent companies to work with digital assets. For example, Goldman Sachs in April this year started a project to launch Bitcoin trading, explaining his decision to the high demand for the coin by institutional investors.
Among the big businessmen who negatively spoke about the cryptocurrency and then beganand to buy themare:
- The the hedge Fund Manager Steven Cohen.
- Billionaire Mark Lasry.
- Venture capitalist mark Andreessen.
- Director Goldman Sachs David Solomon.
Other factors influencing the exchange rate of Bitcoin.
At the rate BTC is also influenced by objective factors:
- Demand. When demand for Bitcoin increases, increasing its value. If the coin no one is buying, it is cheaper.
- Offer. Every day the miners get new coins BTC, so the number of coins in circulation is constantly increasing. To cover costs and to avoid even greater financial losses, the miners began to actively sell the BTC, thereby increasing the market supply.
- Publication in the press. According to the study, the rate of Bitcoin varies depending on the nature of the publications in the Internet. Positive news lead to a rise in price, and negative - to decline in value.
Some financial experts believe that the current situation on the market due to the decline in interest in digital assets, in their opinion, cryptocurrency enthusiasts invent conspiracy theories to justify bearish trend and instill hope for the future of virtual currencies. But let's think straight: the popularity of Bitcoin could not be reduced to twice per month, there are no objective reasons. The downward trend on the market is puzzling, surprising speed. On 14 November, Bitcoin prices dropped 10%, from 19 to 20 November – 20%. Both the jump represent the planned actions, the schema dump, the rate of coins are manipulated. Who is behind this, we don't know for sure, but it's time to admit the correctness of the position of the Commission on securities and stock exchanges of the USA in relation to Bitcoin. The cryptocurrency market is the Wild West, with its advantages and disadvantages.