Live Markets: Bitcoin gets political

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20/11/2025 09:29

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BITCOIN GETS POLITICAL

Bitcoin rebounded on Thursday after plunging to a seven-month low below $90,000 the day before, in the latest sign that investor appetite for risk-taking is drying up across financial markets.

However, analysts say the sharp decline wasn’t driven solely by waning appetite for risk assets.

“(Cryptocurrencies) close association with 'Make America Great Again' (MAGA) movement and nebulous concepts of ‘freedom’ as well as highly concentrated ownership, did not play well in the latest electorate cycles, when key concerns were affordability, cost of living, housing as well as deep inequalities,” says Viktor Shvets, head of global desk strategy at Macquarie Capital.

“This creates an incremental headwind toward midterms,” he adds.

Democrats appear more fired up than Republicans about voting in next year's congressional elections following the party's victories in recent state and local contests.

Shvets notes that similarly steep declines hit what Macquarie Capital calls the “most politically sensitive crypto assets,” namely World Liberty Financial and $TRUMP.

"There is no doubt that AI and cryptos are in a bubble, driven by disruptive general purpose technologies and financial suppression," he said. He did add that blockchain will revolutionise banking and money and AI can radically alter the role and functioning of labour and capital.

(Stefano Rebaudo)

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EARLIER ON LIVE MARKETS:

EUROPE SPARKS TO LIFE AFTER NVIDIA RESULTS CLICK HERE

EUROPE BEFORE THE BELL: STOCKS SET TO JUMP AFTER REASSURING NVIDIA RESULTS CLICK HERE

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