Eflog
  • Business
  • Fashion
  • Finance
  • General
  • Health
  • Lifestyle
  • Technology
  • Travel

Archives

  • January 2023
  • December 2022
  • April 2022
  • February 2022
  • January 2022

Categories

  • Business
  • Education
  • Finance
  • General
  • Health
  • Lifestyle
  • Technology
  • Top Rank
  • Business
  • Fashion
  • Finance
  • General
  • Health
  • Lifestyle
  • Technology
  • Travel
Eflog Eflog
Subscribe
Eflog
  • Business
  • Fashion
  • Finance
  • General
  • Health
  • Lifestyle
  • Technology
  • Travel
crypto trading
  • Finance

How does geopolitical unrest affect crypto trading?

  • April 14, 2022
  • Roland
Total
0
Shares
0
0
0

What is geopolitical unrest?

Geopolitical unrest is a situation where there is a breakdown of international relations or order, typically resulting in violence. It can be caused by various factors, including conflict between countries, economic instability, and political turmoil.

From Europe to Africa, the past months has witnessed many high-profile cases of geopolitical unrest. These events have had a significant impact on the crypto markets, with prices for Bitcoin and other digital currencies fluctuating in response to the news from affected countries.

How do global affairs impact cryptocurrencies?

It’s important first to understand how global affairs impact cryptocurrencies. Cryptocurrencies are:

  • A global asset class.
  • Meaning that global events influence them much more than traditional assets like stocks, CFD or bonds.

They are not tied to any specific country or region and are instead traded worldwide.

Global political uncertainty

Cryptocurrencies are also susceptible to global political uncertainty, which can lead to significant price swings in response to a coup d’état or a change in government. Investors tend to view digital currencies as a haven during political turmoil, with demand for them increasing as confidence in traditional assets falls.

Why are cryptocurrencies seen as a haven?

One reason is that they are not tied to any specific country or region, making them less vulnerable to economic or political instability. Additionally, cryptocurrencies are not subject to capital controls, meaning that they can be traded freely even in countries where currency restrictions exist. 

It was notably the case in Venezuela, where the national currency, the bolivar, has been subject to severe inflation due to its economic crisis. It has made it increasingly difficult for Venezuelans to purchase essential goods and services, as the bolivar’s value has diminished.

Many Venezuelans have turned to Bitcoin and other digital currencies to preserve their wealth. It has caused demand for Bitcoin to surge in the country, with its price reaching nearly $20,000 in December of 2017.

Highly volatile

While Bitcoin is often seen as a safe-haven asset, it should be noted that its price is also highly volatile. It means that it can quickly lose value in response to geopolitical unrest as it can gain value. For example, Bitcoin’s price fell sharply after the U.S. presidential election in 2016, as investors worried about the potential impact of Donald Trump’s policies on the global economy.

While geopolitical events can significantly impact the crypto markets, it’s important to remember that they are just one of many factors influencing prices. Other factors include regulatory developments, technical indicators, and news about individual projects. As such, traders should always take a holistic approach to their trading strategy and pay attention to various factors before making any decisions.

So, what does this all mean for traders?

Global asset class

Firstly, it’s important to remember that cryptocurrencies are a global asset class and are therefore influenced by global events. It means that traders should always keep an eye on the news and be prepared to react to any developments that may impact the markets.

Susceptible to global political uncertainty

Secondly, cryptocurrencies are susceptible to global political uncertainty and can see significant price swings in response to events like a coup d’état or a change in government. As such, traders should pay close attention to news from affected countries and be prepared to take action if necessary.

Highly volatile

Finally, it’s important to remember that Bitcoin and other digital currencies are highly volatile assets, and their prices can fluctuate significantly in response to geopolitical unrest. As such, traders should always exercise caution when trading these assets.

In conclusion

Geopolitical unrest can have a significant impact on the cryptocurrency markets. However, it’s important to remember that they are just one of many factors influencing prices. As such, traders should always take a holistic approach to their trading strategy and pay attention to various factors before making any decisions. Visit this site to find out more; thank you for reading!

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Roland

Previous Article
Interactive Learning for Kids
  • Education

Interactive Learning for Kids

  • February 26, 2022
  • Roland
View Post
Next Article
  • Finance

What is the long and short Iron Condor strategy in options trading?

  • December 5, 2022
  • Roland
View Post
You May Also Like
Cryptocurrency in India
View Post
  • Finance

What does the Future Hold for Cryptocurrency in India?

  • eflog
  • January 24, 2023
View Post
  • Finance

What is the long and short Iron Condor strategy in options trading?

  • Roland
  • December 5, 2022

Leave a Reply Cancel reply

You must be logged in to post a comment.

Recent Posts

  • What does the Future Hold for Cryptocurrency in India?
  • Ideas to Transform Your Space with Easy Ways
  • These 59 Quote of the Day – Aesthetics Short Quotes
  • Self-Love Quotes That Will Inspire You and Work-life Balance
  • “Stray coming to Xbox or Game Pass? updated version”

Recent Comments

No comments to show.
Featured Posts
  • Cryptocurrency in India 1
    What does the Future Hold for Cryptocurrency in India?
    • January 24, 2023
  • Transform Your Space 2
    Ideas to Transform Your Space with Easy Ways
    • January 10, 2023
  • Aesthetics Short Quotes 3
    These 59 Quote of the Day – Aesthetics Short Quotes
    • December 31, 2022
  • Self-Love Quotes 4
    Self-Love Quotes That Will Inspire You and Work-life Balance
    • December 31, 2022
  • Stray 5
    “Stray coming to Xbox or Game Pass? updated version”
    • December 31, 2022
Recent Posts
  • Stranger Things Season 5
    Stranger Things Season 5: Release Date, Trailer, and Everything the Netflix show’s final chapter
    • December 31, 2022
  • all the latest models of Laptop
    Alienware Laptop 2022: all the latest models of Laptop
    • December 31, 2022
  • Imani Showalter
    Imani Showalter – IG – The Prenuptial Agreement She and Stephen Jackson Negotiated
    • December 28, 2022
Categories
  • Business (3)
  • Education (1)
  • Finance (3)
  • General (6)
  • Health (2)
  • Lifestyle (2)
  • Technology (2)
  • Top Rank (9)
Eflog
  • web.clickfor@gmail.com
Copyright © 2022 Eflog.net

Input your search keywords and press Enter.