Bitcoin exchange rate went up on the news of the victory of Donald Trump in US elections
Victory of Donald Trump
As it was predicted earlier by numerous experts, the likely victory of the Republican candidate Donald Trump in the US presidential elections will lead to inevitable increase of Bitcoin course. Events of the last few hours proved such forecasts completely.
Against the background of the incoming news of the probable victory of Donald Trump, Bitcoin rate rose sharply - during the past 12 hours cryptocurrency increased in value by more than 4%.
At the time of publication (08:30 UTC) Bitcoin traded at around $ 740 on Bitfinex and $ 738 on Bitstamp.
When it comes to trading volumes, the greatest activity in the pair USD / BTC for the last few hours was on Bitfinex ($ 13,7 million in the last 24 hours) and Bitmex ($ 12,3 m). A little further are located GDAX and Kraken exchanges at approximately the same rates of $ 7 million.
The market capitalization of Bitcoin currently is estimated at $ 11.779 billion.
Simultaneously with Bitcoin rate growth is observed the collapse on traditional financial markets. The fall on stock exchanges began with getting the first results of exit polls when it became clear that the main rival of Trump Hillary Clinton losing such key states as Florida, North Carolina, and Ohio.
On more than 800 points down the Dow Jones index, that was the largest fall since Brexit.
Mexican peso is unusually reacting, it has carried out the most rapid decline of dollar over the past twenty years (-13%). The reason for this is called Trump's harsh rhetoric toward the US's southern neighbor.
Meanwhile, the dollar is losing value against Japanese yen (-2.6%) and Swiss franc (-1.6%). At the same time, the price of gold is rising, demonstrating investors commitment to safer assets.
The emotional reaction to the political turmoil is typical for investors, but experts say that such events do not have a long-term impact on the market.
"The market responds to most of the major events - from the assassination of Archduke Ferdinand 100 years ago to the 9/11 catastrophe and the recent events in Iraq and Ukraine - the rapid fall of 10% or less, with a return to the original performance in a month. So the best strategy in such moments has always been to go to against the market ", - says former director of the Research Center of Credit Suisse Giles Keating.