Donald trump revealed which tested positive for Covid-19 and along with this announcement, the price of bitcoin fell.
Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!
– Donald J. Trump (@realDonaldTrump) October 2, 2020
In reality, BTC had already shown signs of weakness yesterday, seeing that following the news about the CFTC's complaint against BitMEX, the price had suddenly dropped from around $ 10,800 to $ 10,400 in just over an hour.
However, for the next several hours, it had returned to around $ 10,700, but as soon as the news broke that the US president tested positive for Covid-19, there was another sudden drop.
The price went from $ 10,640 to $ 10,380 in less than an hour. In other words, in the last 24 hours there have been two sudden drops in reaction to two important news.
The first drop was 3.5%, the second 2.5%. In less than 24 hours, the price of bitcoin has fallen by almost 4%.
However, in both cases, the price rose again in the following hours, partially recovering the ground lost in the minutes after the news was published.
In fact, while this news is certainly important, it doesn't seem to have much to do with the value of bitcoin.
The two falls seem more like emotional reactions to something unexpected than rational reactions from investors.
In any case, it is curious to see how, in the face of political and economic uncertainty, Bitcoin falls, when everyone would expect the opposite. It is also true that during the first lockdown, that uncertainty caused the value of BTC to plummet.
It must also be said that in recent days, the trading volumes of BTC in the crypto markets have been very low and this can favor sudden fluctuations, especially if they are generated by sudden fear.
It could also be that the bitcoin price between yesterday and today is going through a moment of weakness, and it only took two pieces of news like this to bring it down.
On the other hand, the legal problems of the BitMEX exchange are nothing new, and Donald Trump's positive coronavirus test has very little to do with the value of bitcoin.
What happened seems more like an emotional reaction in a context of weakness, rather than something that is actually capable of challenging the value of BTC.
Bitcoin vs gold
Meanwhile, however, the price of gold is rising, highlighting how the two assets are uncorrelated.
Gold, in fact, is on the rise, hitting + 1.1% in the last two hours.