November 18, 2016updated 24 Dec 2016 4:12pm

Trump win boosts bitcoin value amid market instability

The US election has come up trumps for bitcoin. Shortly after midnight eastern time, US, during electoral proceedings, the cryptocurrency climbed to $732, almost $120 more than the same time a month prior.

Speculation started the night before the election. If Clinton were to win, this was not expected to have much effect on the value of bitcoin. A Trump win, however, would be a different story.

And true enough, as Trump gained more and more votes, so the value of bitcoin rose in tandem, going up 3.4% in the two hours after midnight on 9 November.

A similar spike occurred during Brexit, when bitcoin spiked 7%, resulting in a $100 increase in the price of bitcoin during one trading session. All this amid the pound taking a serious bashing.

In an interview for CoinDesk, a hedge fund manager dealing in bitcoin said a Trump presidency, despite being an “epic disaster” in most respects, would be “great for bitcoin”, adding, “in the fear and chaos bitcoin would be a defensive asset people could turn to”.

He wasn’t the only one. As a result of Brexit, many analysts had predicted a boost for bitcoin in the event of success for Donald Trump.

Other analysts suggested that even if there was a spike, it would be shortlived. Either way, any positive fluctuation would indicate that bitcoin id a go to measure to safeguard against economic uncertainty.