Why have mass protests in the United States not driven down cryptocurrency prices?
In Los Angeles, significant protests are taking place. These demonstrations have escalated in recent days to other states.
The situation has generated notable tension in the city, even leading to the imposition of a curfew.
So, why have these mass protests in a city as important as Los Angeles not dragged cryptocurrency prices down?
In fact, if we observe recent behavior, we see a mixed picture: while Bitcoin has recorded a slight drop in the last 24 hours, other major cryptocurrencies like Ethereum and several altcoins have shown slight growth.
The answer lies in the very nature of the cryptocurrency market and the factors that truly influence its prices.
Key Factors That Move the Cryptocurrency Market:
The price of cryptocurrencies is determined by a complex interaction of factors on a global scale, among which stand out:
- Supply and Demand.
- Government Regulations.
- Institutional Adoption.
- Market Sentiment (Euphoria and Fear).
- Global Macroeconomic Factors.
- Technology and Security.
Moreover, the cryptocurrency market is not tied to the economy or events of a single city or even a single country. It operates 24/7 through a global network of participants.
Therefore, although the protests in Los Angeles are a socially and politically significant event at the local and national level, their ability to influence the global and decentralized cryptocurrency market is, in practice, negligible. Cryptocurrency investors in Asia, Europe, or South America are more attentive to decisions from the Federal Reserve, regulations on crypto in their continents, or the next major technological development in the sector, rather than disturbances in a U.S. city, no matter how significant they may be.
