Fund manager Ross Gerber sparked a heated Twitter chat about the Trump effect on crypto. More specifically, he argued that the US president's actions have the potential to trigger an upward trend:
"It is possible for Trump to generate a significant ascendant trend for the crypto. Bitcoin was created exactly for this type of situation, "said Ross Gerber.
So, what does the investor refer to?
First, Trump has just hired Mick Mulvaney as head of staff at the White House. Mulvaney pronounced frenetic in favor of crypto, which gave hope to cripto-enthusiasts.
Secondly, the Federal Reserve Bank of America has just announced an increase in the interest rate. US scholarships have dropped substantially and many analysts warn that a new economic crisis will be triggered.
Trump is an enemy at the Federal Reserve, considering it to be the "only problem of the US economy."
"The only problem our economy has is Fed. They do not have the ability to understand market feelings, they do not understand the necessary trade wars or strong dollars that require the closure of certain international relations. "Trump claimed on Twitter.
Other similar presidential statements fueled the panic on traditional financial markets. Trump also said he wants to fire the Federal Reserve Governor, though he does not have this option.
The Trump effect may change the trend
Overall, the US president's statements fuel the fear of a new recession. Moreover, Secretary of the Treasury, Steven Mnuchin, contacted the chief executives of the six largest US banks to ensure they had enough liquidity. Its action is only to fuel the panic the banks are trying to avoid.
Originally, Bitcoin was created as an alternative to dependence on banking systems. The Wall Street veteran, Max Keizer, has expressed the easiest situation:
"Bitcoin adoption has always been stimulated by bank failures, economic instability, rising inflation caused by bank rescue plans and political turmoil."
Therefore, it is not surprising that some investors see this war between the Federal Reserve and Trump as a positive situation for Bitcoin.