Corruption, Collapse or Craziness? The 3 Political C's Steering Cryptocurrency Markets
A very positive market overnight sees the global cryptocurrency market cap rising by $21 billion to $327 billion, Bitcoin up $360 to $7480 and Ethereum gaining $40 to $560. News feeds are throwing up some interesting predictions for the cryptocurrency markets in the coming weeks and months – some far more plausible than others of course.
Italy sees substantial political and economic turmoil at the moment as the struggle to structure a government and finance minister continues with talks of leaving the Euro making headlines again. As a result, investors appear to be migrating to Gold - the usual hedging commodity in times like these – and also Bitcoin it would appear. Bitcoin appears to have held some of its gains whilst Gold saw some easing over the same period.
Brexit – the never ending political saga courtesy of the UK also continues to concern investors in the traditional markets – again driving investors and their cash into hedging mode. So much so even George Soros has written a lengthy post on how to “save” Europe – whilst the underlying motives behind the post are not clear, it’s a fairly safe bet Soros will be profiting one way or another from the outcome – perhaps we are about to see the currency king finally make his move into the cryptocurrency world.
Spain is under the spotlight as Prime Minister Mariano Rajoy faces a vote of confidence at the end of this week over corruption convictions of a number of people connected to the Peoples Party, this on top of the ongoing Catalan independence issues still weighing on the country. No doubt there will be a few Gibraltar/UK oriented stories surfacing in the coming days as is often the case when negative political news emanates from Spain.
Crazy person Cryptocurrency advocate John McAfee also hitting the headlines for various reasons – predicting Bitcoin will hit $15,000 in June, and fall again in July based on his “algorithm” used to predict the date Trump will sign a deal with Korea. Based on the general political news surrounding the financial world at the moment:
My short term price predictions: in a major dip, with nearly everything dropping, the price of Docademic doubled since my prediction. The market will turn before June 12th and my predictions will hit. My algorithms predicted Trump's June 12th date. They have never been wrong. pic.twitter.com/IGAzWPtOV4— John McAfee (@officialmcafee) May 24, 2018
McAfee might actually be right on this occasion however, McAfee has also announced his intent to produce a crypto-backed FIAT currency. McAfee elaborated on his initial announcement on twitter with slightly more detail here, explaining the McAfee Promissory Note and “McAfee Redemption Units” MRU’s and how they can be “redeemed” for a private meeting with McAfee in a list of conditions not dissimilar to what might be required when arranging a hitman for the mafia. The terms state only a maximum of 100 MRU’s can be redeemed for meeting minutes with him, which begs the question of why there is a 500 note?
To go along with prior tweet: pic.twitter.com/7s7mpGFvnD— John McAfee (@officialmcafee) May 29, 2018
If it’s just for collectible purposes only at $9.95 a unit it might be a while before they become truly collectible and hold value. Having said that, the size of McAfee’s following and influence in the crypto space is staggering and has moved markets substantially in the past.
Overall there could be a flight to Bitcoin for hedging purposes in the short term leading to a sizable bull-run as McAfee suggests, in reality I suspect we may well see positive gains for the cryptocurrency markets in general (not just Bitcoin) as the public become more concerned about the growing financial turmoil globally.
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Created: Wednesday, May 30, 2018
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