The current wave of political crisis in Italy casts an impact on financial market as the bitcoin price bounced back. The cryptomarket has made a come back in the middle of political crisis in Italy and Europe. Ethereum and bitcoin cash are the largest cryptocurrency by market capitalization were among the major cryptocurrencies that gained big. The cryptocurrency was trading up 4.8% at $7,446 a coin.
Italy And Economic Crisis
George Soros who “broke the bank of ENGLAND” has warned of a major and approaching financial crisis looming, he cited instabilities within the European Union and trade tensions with the U.S. Italian bond yield suffered the most significant leap since 90s, under the safety of German and US bonds money fled out of Italy, suspected exit of the euro-zone dubbed italexit made the stocks dropped. The election results in March took shape of a global crisis.The negativity took over the stocks, italian bonds are suffering. Amidst the faltering global financial markets, the bitcoin is gaining. With the current economic crisis posing a threat to the euro have made the advantages associated with the decentralized currency as bitcoin.
Currently the bitcoin price is trading above the $7,400 chart.
The Connection Between Economic Crisis And Bitcoin Climb
It started with a robust sell off in italian bonds, the Euro, and global stocks and continued to the rise in crypto coins. The political crisis post the rejection of government chosen by representatives elected by the people in Italy by the Italian President made the people see it against the freedom of people. Under this undemocratic situation bitcoin and other cryptocurrencies with their decentralized and democratized system which undermines the establishment came as best alternative.
Fundstrat’s Thomas Lee cheered the crypto market’s response saying
To an extent, I think its good to see Bitcoin rallying with Gold, as the adverse developments in Italy and globally are pushing investors to risk-off. It’s good to see Bitcoin as an uncorrelated trade on a risk off day.