Is Trump’s election threat pushing the dollar lower and Bitcoin higher?

0

Last Updated on 2 August 2020 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
View all posts

Financial analysts in the United States cannot stop talking about the weak dollar. It had been very low for a few weeks, but since President Trump threatened to postpone the presidential election (which he suggested on July 30), the dollar has slipped to the lowest level in two years.

So other investments go higher in response to this, such as the euro, gold, silver, and also Bitcoin.

Meanwhile, Trump also threatens to ban TikTok.

Advertentie.

COVID-19 and bad polls

US financial analysts have been saying for weeks that the US’s weak performance on COVID-19 is associated with some sort of “sell button” on the dollar. Investors have since sought refuge in other goods, so gold and Bitcoin are also rising, they claim.

Anthony Pompliano, the eternal Bitcoin bull, also said that the low dollar was quite striking. Cameron Winklevoss, who co-founded the well-known crypto platform Gemini with his brother, mocked Goldman Sachs on Twitter because the bank spoke of the dollar’s weakness but did not say a word about Bitcoin.

With President Trump threatened to postpone the November election on Twitter, the falling dollar has grown like a snowball. Trump’s position in the election polls prompts him to resort to that measure. However, with the lowest level in two years against the euro, this currency pair affects almost the entire western economy.

Crypto analysts don’t agree 100 percent with this assumption. According to them, the fact that Bitcoin had been refusing to go below $ 9,000 for weeks (ever since the halving) was enough to attract more investors. They also point to the altseason, which refers to the weeks of strength for smaller altcoins such as Cardano, VeChain and Chainlink, all coins that have been looking for higher peaks in recent weeks.

Also a ban for TikTok?

Trump also threatened to ban the Chinese app TikTok in the United States. With about two billion users, the app is extremely popular with young people worldwide, but many agree that it is dangerous to give all that data to a Chinese company. India acted the same way a while ago and banned TikTok in its country.

Whatever may happen in the coming weeks, with Bitcoin at $ 11,000 and the same dollar at about 1.18 against the euro (a level last reached in 2018), everything seems to be going towards a (temporary) top.

So pay close attention to Trump, the dollar and also the Federal Reserve and Congress (who’ll decide on additional Covid-19 support measures) in the coming days. Who knows, the Bitcoin price might just depend on all this a bit.