The attempted assassination of Donald Trump has pushed Bitcoin upward

On Sunday, July 14, Bitcoin’s value saw a sharp increase, rising above 60 thousand dollars. Although a week earlier the most popular cryptocurrency in the world showed the same sharp decline.

Analysts at Bloomberg linked the growth of Bitcoin to the attempted assassination of Donald Trump. The increased chances of the politician winning the presidential race affected the cryptocurrency’s exchange rate. This once again proves how much the crypto market is affected by the external influences, says Yaroslav Bogdanov, founder of GDA Group.

Last August, Bitcoin collapsed, causing investors to incur losses of billion of dollars. Then the reason was the actions of Elon Musk, who announced the sale of digital assets worth hundreds of millions of dollars. Less than a year later – in March, Bitcoin updated its historical maximum, breaking the threshold of 73 thousand dollars. The growth of investment in the crypto market by leading industry players was the determining factor.

“Despite constant fluctuations, high volatility and dependence on external factors, the cryptocurrency market remains attractive for investors. The total capitalization of more than $3 trillion speaks for itself. The cryptocurrency exchange rate constantly fluctuates depending on various events, even those not directly related to digital currencies. The attempted assassination of Donald Trump, which led to the growth of Bitcoin, is a vivid example of how this segment of the financial market is not protected from the influence of extraneous events,” said Yaroslav Bogdanov.

A number of measures need to be taken to assure the increased stability of the cryptocurrency market whilst reducing the effect of external events. Legal and transparent regulation of the cryptocurrency market are crucial components the digital currency requires to exclude any manipulation and ensure stability. The introduction of uniform norms and rules for all market participants will help reduce risks and increase investor confidence, believes the expert.

“Developing the security infrastructure of the digital asset market, creating tools to protect investors’ funds will help reduce market volatility. Cryptosphere, as a decentralized system, should have its own independent mechanism to regulate its activities,” noted Yaroslav Bogdanov.

It is equally important to raise the level of financial literacy through education and information about the peculiarities of cryptocurrencies and blockchain technologies. The more people understand the essence of cryptocurrencies and their potential, the less panic reactions to external events will occur and the more stable the crypto market as a whole will be, said Yaroslav Bogdanov.