So far, cryptographic markets have not behaved as planned under the Trump administration. Investors hoped that regulatory reform and policies as a Bitcoin strategic reserve would increase the prices that are significantly higher. But it was the opposite. Bitcoin went from high well above $ 100,000 at the start of the year to a hollow in the middle of 80,000 in most of March.
The prices of cryptography have suffered from increasingly correlation with traditional assets such as actions and obligations, which have been affected by macroeconomic uncertainty. Prices – overloading the United States is on imports from other countries – Wall Street is concerned about a global recession. Cryptographic investors have avoided cryptographic assets, which are considered relatively risky.
“It is a question of” the appetite of the risks “of the markets which continues to deteriorate and, for the moment, it stimulates a gap between cryptographic assets and gold, which continues to be the` `refuge ” of choice,” said Marc Ostwald, chief economist and global strategist at ADM Investor Services International.
“”[That’s] Largely motivated by reserve managers of the central bank FX, who seek to reduce exposure to the USD, which has long been a source of concern for them. »»
As the global financial and commercial system becomes more fragmented, investors are looking for alternatives to more risky assets, including dollars. For the moment, it means turning to gold, which is up 18% for the start of the year.
But that could change, said Omid Malekan, auxiliary professor at the Columbia Business School and author of “The Story of the Blockchain: A Beginner’s Guide to the Technology that nobody understands”. Bitcoin could be the new gold early.
“I think everything [future] is uncertain and in some respects unknowable, because there are many cross -country outlines and the crypto and the prices are new. Some people argue that crypto is only a risk technological asset and would sell due to prices. But Bitcoin has found feet in certain circles as “digital gold” and the physical variety rises on the new prices. So what will he be?
In other words, economic uncertainty could lead investors to seek Bitcoin as they have sought gold in recent months.
Another note of positivity: the impact of the rates on the crypto could be “evaluated” and the worst could already be finished, said Zach Pandl, responsible for research in Grayscale, an asset management company of crypto.
President Trump is expected to announce the American prices on Wednesday April 2 at 4 p.m. He – which is known as the “Liberation Day”. According to reports, he will exhibit “reciprocal prices” against 15 countries which have received prices against the United States, notably China, Canada and Mexico.
Pandl estimates that the prices have so far taken 2% reduction in economic growth this year. But the Liberation Day could actually arrest the worst of the pain felt in the financial markets. “If we see an ad [on Wednesday] It is difficult but progressive and focused on the 15 countries they seem to target, I expect the markets to be reduced to this news, “Pandl told Coindesk.
“Potentially, once we have succeeded in this announcement, cryptographic markets can focus on fundamental principles that are very positive.” Pandl said that announcements like the IPO of Circle would not occur if institutions did not have a high degree of confidence in the digital asset sector and the policies surrounding it.
In addition, Pandl, a former macro-economist by Goldman Sachs, believes that prices will increase the appetite for currencies that are not dollars.
“I think the prices will weaken the dominant role of the dollar and create space for competitors, including Bitcoin.
Pendl still thinks that Bitcoin will reach new heights of all time this year, despite the current pessimism around prices. “I would not have left my work as Wall Street if I didn’t think Bitcoin would be the long-term winner,” he said.
