Javier Milei Wins Argentine Presidency; Bitcoin Gains Nearly 3%
The self-described anarcho-capitalist has been supportive of bitcoin, calling it “the return of money to its original creator, the private sector.”
The next president of Argentina will be Javier Milei as his opponent Sergio Massa conceded on Sunday evening, saying “Argentines chose another path.”
With roughly 87% of the votes counted, Milei has 56% of the tally versus Massa’s 44%, according to Bloomberg.
Trading quietly through most of the weekend, bitcoin (BTC) began rising late Sunday afternoon on chatter about a strong showing for Milei. Following Massa’s concession, the crypto currently is higher by nearly 3% over the past 24 hours to $37,350.
“We have to understand that the central bank is a scam,” said Milei earlier this year when asked about bitcoin. “What bitcoin is representing,” he continued, “is the return of money to its original creator, the private sector.”
Milei to this point, however, has not gone as far as proposing making bitcoin legal tender. He’s instead calling to eliminate the country’s central bank and dollarizing an Argentine economy that’s been walloped by inflation that reached 142% in October.
Bitcoin charts usually present the progress of the price using Japanese candlesticks. Each candle represents a specific time-frame (depends on the chart) and is showing the open, close, and price range during that time-frame. On top of that, the chart usually contains a variety of technical analysis indicators. The most popular are support and resistance levels, trend-lines, Relative Strength Index (RSI), Fibonacci retracement levels.
Just like any other traded asset, the Bitcoin price is affected by supply and demand, as simple as that. However, the occurrence of certain global fundamental events could have a relation to the value of Bitcoin: During the year of 2016, for example, India’s banknote demonetization had a positive effect on Bitcoin. In India, the price of the cryptocurrency was trading 20% higher than the rest of the world. If we go to recent years, the 2019 bull-run could be related to Facebook announcing on the Libra project. The bull-run started losing momentum as news regarding Libra’s regulation’s hardness started popping on the news. Besides the major global events, there are some Bitcoin heavy-bag holders, which are also known as Bitcoin Whales. They are holding thousands of BTC’s, and that is enough to create large enough daily price maneuvers.
Understanding the Surge: Factors Driving Today’s Bitcoin Price Rally
In the fast-paced and ever-evolving world of cryptocurrency, the question on everyone’s mind today is: “Why is the Bitcoin price up?” As enthusiasts and investors closely monitor the volatile digital asset markets, it’s essential to delve into the myriad factors that contribute to the current surge in Bitcoin prices.
Market Sentiment and Speculation:
One of the primary drivers of Bitcoin’s price movements is market sentiment. Speculation plays a significant role in the cryptocurrency space, with traders reacting swiftly to news, social media trends, and macroeconomic indicators. Positive sentiment, fueled by optimistic news or influential endorsements, can lead to increased demand and consequently drive up prices.
Over the past few years, institutional adoption of Bitcoin has been on the rise. High-profile endorsements from well-established financial institutions, hedge funds, and corporations have brought newfound legitimacy to the cryptocurrency. Today’s surge may be attributed to increased institutional interest, as more traditional financial players recognize Bitcoin’s potential as a store of value and a hedge against inflation.
Macro Economic Factors:
Global economic conditions can significantly impact Bitcoin prices. In times of economic uncertainty or inflation concerns, investors often turn to alternative assets like Bitcoin. The current surge might be a response to prevailing economic conditions, such as fiscal policies, geopolitical tensions, or concerns about traditional markets.
Regulatory developments, both positive and negative, can exert a profound influence on Bitcoin prices. Positive regulatory news, such as favorable legislation or regulatory clarity, tends to boost investor confidence. Conversely, negative developments, such as proposed bans or restrictive regulations, can trigger selloffs. Traders closely monitor regulatory environments worldwide, and any significant changes can result in rapid price movements.
Technological Advancements and Upgrades:
Bitcoin’s underlying technology is continuously evolving, with developers implementing upgrades and improvements to enhance the network’s scalability, security, and functionality. Positive advancements, such as successful network upgrades or the integration of innovative technologies, can positively impact market sentiment and contribute to upward price movements.
Supply and Demand Dynamics:
Bitcoin’s fixed supply of 21 million coins plays a crucial role in its value proposition. As demand for Bitcoin increases, its scarcity can lead to higher prices. Factors such as increased institutional demand, growing retail interest, and limited supply due to halving events contribute to the supply and demand dynamics driving the current price surge.
Global Adoption and Acceptance:
Wider acceptance of Bitcoin as a means of payment and a store of value can contribute to increased demand and, consequently, higher prices. Positive developments in terms of merchants accepting Bitcoin, regulatory clarity around its use, and its integration into mainstream financial systems can all contribute to the ongoing surge in prices.
In conclusion, the question of why Bitcoin’s price is up today is multifaceted, with various factors converging to drive the current surge. Market sentiment, institutional adoption, macroeconomic conditions, regulatory developments, technological advancements, supply and demand dynamics, and global adoption all play integral roles. As the cryptocurrency landscape continues to evolve, it’s essential for investors and enthusiasts alike to stay informed and vigilant, recognizing that the market’s volatility is influenced by a complex interplay of these and other factors.