During the presidential race, Republican candidate Donald J Trump came out with a set of policies that defined his ideologies and set up the foundation for a successful campaign. The economists around the world were concerned that Trump’s presidency and economic policies would result in a market collapse. Nevertheless cryptocurrency proponents were optimistic about Trump’s presidency as his policies were positive re-enforces for fintech industry. This reflected in the rise of Bitcoin prices when Trump won the elections in 2016.
President Donald Trump took to office in January and started to deliver on his promises right off the bat. Trump has signed an anti-immigrant policy in the first week of administration and this has caused a lot of ruckus amongst the populous. But this event has boosted Bitcoin prices in the most unexpected fashion and has proven positive for cryptocurrency markets. Let’s dive deep into how the policy has affected global markets and Bitcoin prices in particular.
The ban on Immigrants:
President Donald Trump signed an executive order 27th -Friday that indefinitely suspends admissions for Syrian refugees and limits the flow of other refugees into the United States by instituting what the President has called “extreme vetting” of immigrants. The order bars all persons from certain “terror-prone” countries from entering the United States for 90 days. The countries impacted due to the ban are Iran, Iraq, Syria, Sudan, Libya, Yemen and Somalia. The real blow came when even Green Card holders from the respective countries were ordered to be deported when looked into the finer details.
The petition that followed:
The order came as a surprise for many Multi-National Companies that base the core of the structure on the kind of talent diversity offers. The order wasn’t received in good stead by these companies as this would, to a little extent, result in loss of workforce for these companies. To counter these effects, major tech companies like Microsoft and Amazon have launched legal action against the executive order. Both firms have joined the Washington state government in a lawsuit challenging the details within the order. As part of the case, Microsoft, Amazon and also Expedia, are all preparing legal statements saying how the move from Trump has an impact on their business.
How Bitcoin markets benefited:
With corporate giants backing the petition, the global equity markets are in a state of apprehension. The effect of the ban has reflected in the market prices of the stocks of the highly affected companies and continues to remain in that state. With so much uncertainty surrounding the global markets, investors are looking for options to shield their assets from the impending volatility. That is where Bitcoin and Gold come into picture. Bitcoin is the digital analogue of Gold which proved out to be the Safe Haven in 2016 with better returns and non-correlation. On the same accounts, the Bitcoin prices saw a good boost over the weekend with prices approaching all time high again. Will further policies from Trump give Bitcoin the boost to breach all time high? That only time will tell.