Opinion Traditional and Crypto Markets Fall on the News of Trump testing Positive for COVID-19

Traditional and Crypto Markets Fall on the News of Trump testing Positive for COVID-19

October 3, 2020

Friday, October 2 began for most of the world with the bombshell news that came from its main actor – US President Donald Trump. He shared on his official Twitter account that he and the First Lady, Melania Trump, both tested positive on COVID-19. Furthermore, he said that both are feeling well and that they are immediately beginning their self-isolation procedure.

It took hours before the world and the markets began reacting to this with a range of different events. From a political perspective, the same development is a major happening, especially in the light of the upcoming US presidential elections. But, from an economic perspective, the development immediately brought about strong market tremors. These took no time at all to bring down both the traditional stock market and crypto markets.

Because of this Friday also began with the bitcoin price, as well as the price of other major tokens – even small alt tokens also saw their value drop rapidly. Now, the same situation is further weight down by the fact that this is just the start. Presently, no one can say what is going to happen to Trump during the process of his illness or even when or if he will exhibit symptoms. But, the cryptocurrency marked watching these developments is likely glued right now to their TV sets and social media accounts, scouring them all for any news or update.

Breaking Tweet

The interconnected world of esports, streaming services, and other digital platforms naturally learned about the condition of Donald Trump after he himself sent out a tweet with this information. It simply stated that he and the first lady are both positive for the coronavirus. He added that they are quarantined at the White House for the time being. Once the news was out, the confusion and incalculable possible scenarios all broke out. Expectedly, the implications and numeracy not just for the upcoming Presidential elections in the US.

A big element of this development is the upcoming days and weeks of Trump’s condition. At first, on Friday, some believed that he could be stricken with the asymptomatic version of the disease. However, later on, the same day he was flown to a hospital. The reason for this was a precaution, but it was also made known that trump was beginning to experience some mild symptoms. This immediately meant that the option of him being asymptomatic is no longer the table. That is why the possibility of Donald Trump recovering to the White House is out of the window. Without missing a beat, the markets were keeping close tabs.

Market Impact

Besides the overall drop in the traditional markets on the news of Donald Trump’s illness, gold bullion was able to produce a small uptick. It rose by 0.3 percent and stood at 1,908 USD. It too however fell later, even though slightly and only for 20 USD. Bitcoin aligned itself quickly with the traditional markets and fell by nearly 2 percent.

The same moment took the price of a BTC token even closer to that key support line of 10,000 USD. Altcoins, including the second biggest network by market cap and talking price, ethereum, reacted in a similar fashion. On Saturday all of these saw a return to the previous positions, even though Donald Trump remains hospitalized and no one can tell how the illness will progress in his case.

Dangerous Week

One thing is certain, the upcoming week will be crucial for Trump’s health. If his years and physical condition, mainly his weight, are taking into consideration the mortality rate Trump faces is between 10 and 15 percent. This is much higher than the mortality rate for the average population.

However, these factors need to be observed along with the fact that he is currently, as the president of the United States, in the best possible care anywhere in the world. Already, he received two experimental treatments that should make make-up the possibility of his coronavirus infection much less drastic. But, at the same time, there are some indicators that will appear in the next 7 to 10 days that could forecast a much more drastic form of the disease.

Oxigen Support and Ventilator

If Trump’s illness is taking a turn for the worst, one of the first things that will appear in the media is the fact that he will be placed on oxygen support. This means that his lungs are now infected by the virus and are able to produce less oxygen for the body. A way to compensate that is to put a patient on direct oxygen support meaning that the air they breathe in is saturated with a higher concentration of this essential gas. If that occurs the crypto market along with the additional markets of you again take a huge slide down.

The reason for this is the fact that oxygen support shows a more drastic form of the illness that already impacts the lungs. But, if that news is followed by a revelation that Donald Trump Has been placed on a ventilator, the markets as well as the US political system immediately spiral out of control. The survival rate of patients who are on ventilator support is around 50 percent. In the case of Donald Trump and his age and fitness, that percentage will be much lower. The likelihood of Mike Pence taking over the presidency at that moment also skyrockets.

Volatility on Steroids

However it is perceived, the illness of Donald Trump is putting a whole new level of volatility on the already volatile crypto markets. Just as no one can predict how his treatment will progress, no one can say with certainty what will happen to the price of bitcoin or any other digital currency.

But this alone should be reason enough for an investor to proceed with the lots of caution in the coming weeks. While there is no telling how bad the news will be, there is a big certainty that it will not include any favorable movements for cryptocurrency. Instead, similar to the wider financial situation, Trump’s illness will gradually only show how bad of an impact it will have on the markets.