The election of Donald Trump, the future President of the United States scheduled to take office on January 20, 2017, has thrown the global economy and world financial markets into turmoil. Consequently, the price of Bitcoin has surpassed $731 and is presumed to reach a multi-month high of $745.
Contrary to most experts and analysts, Trump enjoyed a dominant victory over Democratic candidate Hillary Clinton, with a lead of 58 electoral votes.
Prior to the election however,the mainstream media and American markets predicted that Trump had as little as 15 percent chance of becoming the President of the United States. Thus, as Trump began to lead the election in the morning of Nov. 8, the US economy and market began to decline in value.
Upon the official announcement, the US dollar and stocks plummeted in value, as the Dow Jones futures decreased 700 points to 17,591 and futures on the S&P 500 and Nasdaq declined by 5 percent.
Global markets, including the Australian share market, lost around $30 bln in value prior to the official announcement, with the Australian sharemarket and national currency declining even further after Trump was officially declared victor.
Nader Naeimi, the Sydney-based head of dynamic markets at AMP Capital told Stuff in an interview that the situation was “scary,” in that both the Australian dollar and its stock markets are rapidly plummeting in value.
Impact on Bitcoin
Global market and economic turmoil, in correlation with the devaluation of the Mexican peso, has led to a surge in the demand for Bitcoin.
The price of Bitcoin nearly reached $740 today and it is currently demonstrating stability at around $733.
Almost immediately after Trump was declared the favorite coming into the election, the value of Bitcoin began to surge. According to BraveNewCoin market data, the price of Bitcoin remained stable at $705 until the election, which pushed it to $739.
As the global economy and markets weaken, the demand for Bitcoin will continue to rise. As Bloomberg noted earlier this week, Bitcoin, gold and Swiss Francs are the “classic safe haven” assets of the world.