Maybe another economic crisis will be taken to lift the cryptocurrency markets. At the moment, Italy's economy is faltering in the midst of a political crisis that has highlighted the cracks in the EU's economic base.
Therefore, you can perceive Bitcoin price trends as Italy's economy crumbles
Italian bonds go bankrupt, and negativity has also spread to stocks. But as global financial markets falter, Bitcoin is finally starting to see the light again, and may have something to do with the fact that a potential threat to the euro highlights the benefits of a decentralized currency like bitcoin.
For this reason, the price of bitcoin is currently negotiating above the threshold of $ 7,400 after falling to a minimum of the month of May, this happened a little earlier in the day.
Therefore, the reasons for the Rally are mentioned. The cryptocurrency markets have been looking for a reason to join, and many of us have been waiting for the centralized governments of the world to provide that catalyst.
Meanwhile, the mechanics of the cryptocurrency markets are working well and have achieved a rally, albeit with a modest trading volume, in a development that highlights the strengths of a decentralized world. Bitcoin and its altcoin peers have once again demonstrated the power of a digital currency that is not controlled by the Central Bank but by the masses.
The crisis in Italy has exerted great pressure on the euro, sending the common currency of Europe to its lowest levels against the dollar in months. Italian bonds have sold similarly amid the possibility that the third European economy will establish its own Brexit. In this crisis, a decentralized currency such as bitcoin becomes even more attractive, when the common currency of Europe becomes unstable.
Thomas Lee, of Fundstrat, applauded the response of the crypto market, providing the following information toBusiness Insider:
"To a certain extent, I think it's good to see Bitcoin meet Gold (gold), as adverse developments in Italy and around the world are pushing investors to take risks. It's good to see Bitcoin as a non-correlated transaction on a risky day. "
In this sense, there are cases, let's take as an example the Latin American economy, specifically that of Venezuela. Although the economic conditions in Venezuela are specific to the region, which include hyperinflation, the food crisis and a broken government, the final result is a currency whose value has been destroyed. As a result, Venezuela's currency was exchanged for bitcoin at a record pace in mid-April, when more than $ 1 million was produced in "bolivar to bitcoin" conversions in a single day. This is without finding out what the real problem is.
Italy's destiny in the EU has not yet developed, and an early election seems to be looming there for the next few months. Meanwhile, it is not just the bitcoin that benefits. Other leading digital currencies, such as ethereum, ripple, bitcoin cash and litecoin, were trading between 2% to 4% higher, while the cardan rose by almost 10%.
These unexpected circumstances put a country in economic problems, due to a political crisis, the distrust of investors, seek a safe haven, some buy gold, cryptocurrencies, such as bitcoin, others seek safe haven in other assets.
In summary, the economies are shaken to the rhythm of politics, it is not possible to forget that the blockchain-bitcoin technology is born or emerges due to the real estate crisis in the USA, in 2008 and that has not yet ceased its influences, it seems that now It's up to the European Union. It waits for new announcements.
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