Trump, price points and COVID-19: 5 things to keep in mind about Bitcoin this week

Donald Trump is driving the markets by improving his health, but the coronavirus is taking its toll.

Bitcoin (BTC) rose to a high of USD 10,730 before dropping on October 5th, as markets fluctuated in line with the fact that US President Donald Trump is contracting COVID-19.

Cointelegraph takes a look at the factors that will influence BTC’s price action this week, as the virus and its consequences dictate the mood of macro-assets.

Trump’s Health Makes Markets Rise

President Trump boosted the markets last Sunday, as traders assessed the possibility of him leaving the hospital on Monday after treatment for COVID-19.

Futures were up, reversing Friday’s losses, along with the major stock markets, including the S&P 500, with which Bitcoin Up continues to show a high correlation.

Trump’s coronavirus diagnosis had caused a modest panic late last week; stocks plummeted and BTC/USD reacted similarly, falling from USD 10,940 to lows of USD 10,380.

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„It’s been a really interesting journey; I’ve learned a lot about the Covid,“ Trump said in a video update posted on Twitter late Sunday, apparently aimed at a crowd of followers outside his hospital before a surprise meeting:

„I learned it by actually going to school, this is the real school; this is not the ‚let’s read the book‘ school, and I get it, I get it. It’s a very interesting thing and I’ll let you know.

Wall Street had not yet opened at the close of this edition, with the resumption of trading set to dictate the trajectory of the market for the beginning of the week.

BTC/USD vs. S&P 500 one year chart Source: Skew
Cineworld shares fall 56% in coronavirus closures

Beyond Trump, the coronavirus continues to create uncertainty in the United States and abroad.

On Monday, New York continued its gradual infrastructure shutdown, while in Europe, the worsening infection rate caused Paris to close certain establishments.

Meanwhile, Cineworld, the second largest movie theater chain in the world, said it would close all operations in both the United States and the United Kingdom until further notice starting October 8. Its shares subsequently plunged 56% to a new all-time low.

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However, rumors abound that Trump’s situation may in fact stimulate both political camps in Washington to reach a stimulus agreement, something that would have an immediate impact on the markets.

As reported by Cointelegraph, Treasury Secretary Steven Mnuchin had already dispelled fears of a continuing impasse by confirming that, whatever happens, the package would include another $1,200 stimulus check for eligible Americans.

The long-term impact of state-sponsored revenue is itself controversial, as commentators have previously argued that once implemented, the checks would be difficult to simply „turn off.

By the time the first round of checks arrived in April, the crypto-currency exchanges noticed a volume increase specifically in the amount of the $1,200 payments.

It’s Europe’s turn to be in the spotlight when it comes to macro-market movements, as the intense last-minute talks on Brexit began on Monday.

The Brexit deal, which has long been a controversial issue for sterling and its traders, or the lack thereof, has previously even managed to produce ripple effects for Bitcoin.

This time, the talks aim to produce a compromise before a crucial meeting of the European Union on October 15, with a realistic deadline for producing a consensus now set for sometime in early November.

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Asked what the impact of not reaching an agreement would be, UK Prime Minister Boris Johnson said on a BBC radio show that the country „could do more than live with it.

In London, FTSE 100 futures rose on Monday, more than reversing its losses from the previous week.

Along with Brexit, as Cointelegraph noted, the Bank of England is investigating the idea of introducing negative interest rates for the first time in its history.