Several economic analysts have come up with different theories as to why Bitcoin began a bull run a few days ago. The bull- run also didn’t leave other cryptocurrencies stranded as the top ten digital assets including Ethereum, Ripple, Litecoin and Bitcoin Cash, experienced significant gains.
Bitcoin surged over 20 percent in just an hour and topped out at $5,304 as recorded by CoinMarketCap. Litecoin also recorded gains of close to 54% and Bitcoin Cash, gains of up to 94%.
Mati Greenspan, a top market analyst at eToro, a social trading and investment platform, has presented his theory and has linked it with Trump’s statement on the issuance of an embargo.
About a week ago, President Donald Trump of the United States stated that the US border with Mexico, its neighboring country was going to be closed due to an increased influx of illegal immigrants through the border. After that statement, on Monday morning, Bitcoin’s price surged to a level it has been unable to get past since the last significant bear market caused by Bitcoin Cash’s hard fork. The price of the leading cryptocurrency is now at the $5,000 mark, from being unable to break past the $4,100 level.
The Connection between Bitcoin Price and Avocado’s
Some market analysts seem to think that the embargo news by Trump and Bitcoin’s price jump are totally unconnected. The news has, however, increased the price of avocado in the United States.
Mati Greenspan said that after the embargo news by Trump, the price of avocado in the United States increased by about 35%. A technical analyst, Tracy Alloway, has however given theories as to a connection between Bitcoin’s price jump and the increase in the price of Avocado. Greenspan has also reiterated that Bitcoin’s price is linked with that of Avocado’s.
Apart from other markets, avocado’s price jumped after the embargo news by Donald Trump. The price rise, however, was to be expected as about three-quarters of avocados consumed in the US are imported from Mexico. The news has increased the price in expectation of the impending difficulties of the avocado supply.
According to Mati Greenspan, the effect of the news in the current market is temporary, but there could be a more significant effect soon to come because of the low liquidity. While Bitcoin cannot change its total supply of 21 million, low liquidity can, however, give it a significant price bump.
Market analysts have continued to speak out to Trump about the financial consequences of the impending embargo. The President still stands on his decision reiterating that the issue of security has always been paramount and is a more important factor than trade.