Honestly, I see some benefits in politics being part of the crypto scene. If you really dig into the fundamentals and have a grip on the U.S. economy, you can capitalize on market shifts and possibly score some decent profits. But yeah, the downside is that political factors can make things way more volatile and risky. So, keeping your eyes on global events is a must.
Unfortunately politics cuts across all sectors of our life whether you like it or not, many sectors are influenced by political decisions and that is just how things are. The crypto market is not excluded, this is why it is usually affected by political events or political decisions. As long as crypto market exists it will always be affected political events But the extent to which political events affect the crypto market may not remain the same over time as I feel the effects will reduce because more persons will become used to the volatility that it causes and become less reactive.
Investors or you mean trader.
So you enjoy the obvious manipulation that have been ongoing by Trump and his family.
I don't believe politics should be involved in the market even if it's inevitable
Since Bitcoin exist in an environment and most be affected by certain factors in the environment
Like political changes.
Politics influence most investment markets. Be it geopolitics, international relations, economic policies and tensions, etc. If it's good or bad is somewhat subjective, but its influence is inevitable. Though political influence in investment markets varies, it is much present in some than in others.
Not everybody will agree that it's a good thing that one post from Trump would send weak hands into panic mode, causing them to sell, and then the price falls. The good part though is that such influence is short-term and it tends to wane with time. In the long run the market would not react so much to it and market forces (supply and demand) would mostly drive the market.
If exploited to find the right moment, it might be beneficial. However, it can be troublesome for crypto traders themselves. Politics has clearly entered the crypto realm. For example, every country, or almost every country, now has its own policies regarding crypto. And when news spreads, it can cause a slight ripple in the market or a tangible impact. For example, when China banned crypto mining or something similar. Isn't that one example? Or maybe I misunderstood. And when the news first broke, the market fell, benefiting short traders trading futures. Meanwhile, news of China becoming more friendly toward crypto can have the opposite effect. Similarly, US politics, even during the US presidential election, have a significant impact on crypto, right? And many people take advantage of it.
It's fairly obvious to ask about the politics involved in crypto.
From a side, this involvement can contribute to protect investors from risky flactuation and security risks like scam or money lundering. Also this can ensure the market stability which strengthen the confidence in this technology and help wide adoption.
From another side, the excessive involvement which is non organized can limit innovation and technological development, and limits the decentralized nature of cryptocurrencies, which may push markets to move to less regulated environments.
The influence of politics does not directly affect the crypto market. Rather, political influence affects people's trust and affects people's real lives. As a result of these influences, we see the crypto market in a volatile state.
For example, suppose a major political party announces that they are going to buy a large amount of Bitcoin and hold it for the long term. Then people will start believing that Bitcoin's price is going to increase and that it is not going to lose value very soon due to the inclusion of such a major political party. If they announce a sale, the opposite happens. Even positive or negative announcements change people's beliefs and people start trading more, so we see the crypto market in a volatile state due to political influence.
Currently, Trump's tariff policy is having a big impact on the crypto market. This is mainly due to the increase in people's spending, there is a shortage of discretionary money and people are also spending less money in investments. So we can see the market being somewhat stable or down. We may see the opposite in the opposite announcement. No single factor can directly affect the crypto market.
I would like to believe that politics does play a role in the crypto currency market because, it makes up for the speculation that results to volatility and affects price and trend movement.
Else, how would you conclude on a case like an announcement President Trump made about increasing tariff to 100% and suddenly the crypto market was affected by just that announcement. It shows how a politician has more power to influence the price of BTC or crypto currency than an investor would even with their portfolio.
Of course, political news is also a factor to look out for while investing in cryptocurrency because the last election of the USA is a clear indication that the market prices are also influenced by political news. Look how the price of bitcoin and some other cryptocurrency skyrocketed upon the declaration of Donald Trump as US president-elect, and some short term investors took that advantage and made good profits from their crypto investment so political news now play a very vital role in determining the price movement of cryptocurrencies. The government sure have a strong influence in the market because when we talk about political power we are actually referring to the government. Paying attention to political news is fine but it's mostly short term investors that cares much about the influence of politics on cryptocurrency but for long term investors, they know that political influence in the market are temporary because it doesn't impact in the market for a long time.
To be cynical, politicians are only using cryptocurrency to enrich themselves - Trump is the epitome of this. He doesn't care about Bitcoin whatsoever, it is merely a device that acts as a distraction for him to pimp out his Trumpcoin. He is just trying to raise money for his family and we are Bitcoin holders are just bystanders that benefit from it. As the world has Trump for a few more years we are likely to be insulated and benefit during that time from his liberal support of it. As investors you always need to take advantage of the current market conditions instead of imagining what it should be or will become. Take advantage of the volatility that is still on offer and you could find some profit out of it.
Bitcoin I decentralized which can not be regulated by the authorities. So there is no special place for in the overall blockchain designed for the US. The highest any country that want their citizens to adopt bitcoin do is to legalize it for their legal tenders.
Volatilities can only be triggered but not controlled because bitcoin is borderless and decentralized while demands and supplies generally regulates the volatilities.
Investors psychological sentiments are of course also driven by political news not directly Influences bitcoin.
If the crypto market should run purely on politics in the manner that I perceived you are referring to, that would be very destructive to the market, tell me if there's any big company that would want to continue investing into an asset that the price is constantly manipulated in the favour of one group of people?
Those big financial investment companies like Black Rock and micro strategy, they are only and mostly investing on Bitcoin, don't you ask why they don't chose to gamble on meme altcoins? They choose Bitcoin because they believed it is worth putting in such huge amount, they don't chose altcoins because of how the market of altcoins are still being manipulated, now that you are implying the involvement of politics into the market, it means it will completely destroye the altcoins market. As for Bitcoin, it can suffer temporary collapse in price but Bitcoin will definitely survive the hit but almost (if not all) the altcoins will die off.
How beneficial? The influence of politics and global affairs on the crypto market and how beneficial it can be should be asked from those who lost millions of dollars in the recent crash, which was basically caused by some global affairs, namely Trump playing his tariff game and causing panic around which caused the sharp drop in the prices of cryptocurrencies and the crash wiped around $20b from the market, which is a very big amount.
So, I don't know from what sense you are saying that investors or traders can take advantage of the market movements if politics is involved in it. I know that it can sometimes make the market move in a positive direction, but that doesn't mean it's a positive thing as a whole. I personally think that the crypto market will be much better if it doesn't get influenced by politics or political affairs, blunders, etc.
In normal circumstances politics have influence and it can play a role to influence the market of cryptocurrencies, especially with crisis, it's crisis I know more that better that affects the crypto space
Note, not all country politics can influence the market structure or wings of cryptocurrencies, They're countries that can influence the market of cryptocurrency and can also play neither positive impact for the price increases and also play a negative roles in cryptocurrency, so the roles of government can be vice-versa
They are part of the game and adoption comes through politics and like with the US, Trump's stuff and policies he agrees with has an impact to crypto.
Risk and volatility is part of crypto already and one downside of having an influence with politics is that they have more room for manipulation of the market. And that's what we're seeing happening today.
Yeah, politics is crucial for maintaining the hyper-volatility that characterizes the crypto market (which bears the brunt of all the political issues of every country in the world). Otherwise, who would be driving most of the market's trends? Isn't that what most traders want? If prices remained flat, perhaps the growth of new comers wouldn't be as drastic, as it would clearly be boring.
It might have its pros and cons but like satoshi stated, it was inevitable. Politics is the representation of the society and for the things that matters to society, the politics is involved. Political involvement mostly means higher regulations and taxes and mostly could be counterintuitive for the anonymous and decentralized nature of blockchain based transactions. But the larger aspect of bitcoin now is the value of trust and the potential of rise in value. People are calling it the digital gold and most people are into it for the value rather than its anonymity, decentralization or to use it as a digital currency.
Whether you like it or not, political movements will always affect the crypto market. Not just the US, but other regional movements and key decisions will also have an impact on the crypto market. Do you guys remember what happened when Russia started invading Ukraine? These geopolitical developments will also impact the cryptocurrency market. I'm honest, I dislike politics, but it doesn't really matter. I like it or not, it will affect the crypto market and stock market as well.
If people stayed informed about current developments, they could take action in response to the movement. However, some individuals do not like politics and therefore don't want to stay informed about any political developments. I am one of them.
When politics intervenes in the field of cryptocurrencies, it is definitely bad. But this is inevitable, since politics is present in all spheres of society. However, the politicization of cryptocurrencies leads to a loss of decentralization, gradually turning cryptocurrencies into the same controlled instrument as traditional finance.
For example, classifying cryptocurrencies into clean and dirty ones out of good intentions actually destroys the most important property of money - interchangeability. This turns the money into personalized coupons. In fact, this is the goal - to replace money with "food stamps" for future "slaves", under the guise of fighting crime. And has crime decreased significantly? For some reason, the more measures are allegedly taken to combat crime, the more fraud (already on a global scale), drug trafficking, etc. flourish.
You're not considering market manipulations, strict regulations, and even government interventions that arise very often from political involvement. There is no doubt politics can create opportunities for those who understand market dynamics, at the same time it also exposes the crypto market to uncertainty and manipulated volatility. In most cases, political decisions tend to favor centralized control rather than the decentralization that crypto was built upon.