In the immediate aftermath of the election in the US, global markets responded just as analysts expected in the event of a Trump win – they declined. Almost immediately, however, once the decline tapered off, we saw a recovery, and pretty much across the board, markets closed up or flat, or if down, only by a small amount, on the day’s open.
This is a sign that sentiment may not be as adversely affected by what I guess we could call a pretty solid black swan event – not in this instance, at least. This, in turn, isn’t great for bitcoin. Many behind the scenes (and most out in front) were sort of hoping that a situation such as the one in which the US now finds itself would trigger some degree of risk of sentiment. Risk off sentiment generally translates to a flight to precious metals, and to date, bitcoin has somewhat correlated with this flight. Risk off, bitcoin goes up. It’s a fringe response, of course, and over time the assumption is that the threshold that defines this fringe will shift farther and farther towards the mainstream, but there’s generally a flight nonetheless.
Well, unfortunately, things haven’t really played out