Quick Facts
Bitcoin’s price may still reach over $200,000 despite the current correction.
Bitcoin Outperforms Global Assets in Post-Trump Election Period, Contrary to Correction in Cryptocurrency Prices
The current correction in the Bitcoin (BTC) market has given many investors pause for concern. After months of skyrocketing growth, the leading cryptocurrency’s price has dropped significantly, leaving many wondering if the party is over. However, in a recent interview with Cointelegraph, Gracy Chen, CEO of Bitget, has a message of optimism for Bitcoin enthusiasts: the cryptocurrency’s price may still reach over $200,000, despite the current correction.
So, what’s driving Chen’s confidence? In this article, we’ll delve into the reasons why Bitcoin’s rally shows no signs of slowing down, even after a correction. We’ll also explore the broader implications for the global economy and investment landscape in the post-Donald Trump era.
The Post-Trump Effect: Why Global Assets are Losing Steam
Before we dive into the world of cryptocurrencies, let’s take a step back and look at the bigger picture. The post-2016 US presidential election has had a profound impact on the global economy and financial markets. The Trump administration’s policies, such as the tax cuts and deregulation, led to a significant increase in asset prices, including stocks, bonds, and commodities.
However, the election of Joe Biden as the 46th President of the United States has brought a new wave of uncertainty and caution to the markets. The shift towards a more moderate and balanced approach to governance has led to a re-evaluation of investment strategies and a move away from the riskier assets that dominated the market during Trump’s presidency.
The Rise of Safe-Havens: Why Gold and Bonds are Losing Their Luster
In the current market environment, investors are seeking safety and stability, leading to a decline in the prices of traditional safe-havens like gold and bonds. Gold, which has traditionally been a hedge against inflation and market volatility, has seen its price drop over 10% in the past six months. Similarly, government bonds, which have historically provided a low-risk and stable return, have seen their yields drop to historic lows.
So, where are investors turning? The answer lies in the world of cryptocurrencies, particularly Bitcoin, which has emerged as a new safe-haven asset class.
Bitcoin: The Unstoppable Force
Bitcoin’s rise to fame began in 2019, when its price skyrocketed from around $3,000 to over $14,000. Since then, its price has continued to grow, despite occasional corrections and volatility. So, what makes Bitcoin such an attractive asset class?
For one, it’s the limited supply of 21 million Bitcoins, which is designed to prevent inflation and ensure the integrity of the network. Additionally, the decentralized nature of Bitcoin, powered by a global network of validators and transactions, makes it virtually un-hackable and resistant to government interference.
Why Bitcoin’s Price Will Continue to Rise
Despite the current correction, Bitcoin’s price will continue to rise for several reasons:
Growing Adoption: As more institutional investors and mainstream companies enter the market, the demand for Bitcoin will continue to grow, driving up its price.
: Bitcoin’s utility as a store of value and everyday payment method is expanding, making it an attractive asset for a wider range of investors.
Scarcity: The limited supply of Bitcoins ensures that the price will continue to increase over time, making it a valuable investment for long-term holders.
A New Era for Cryptocurrencies
The shift away from traditional safe-havens towards alternative asset classes like cryptocurrencies is a trend that’s likely to continue. As investors become increasingly disillusioned with the volatility and uncertainty of global assets, they’ll turn to Bitcoin and other cryptocurrencies to diversify their portfolios.
With its unstoppable force and increasing global appeal, it’s only a matter of time before we see a new all-time high for the world’s leading cryptocurrency.
