The rising global political uncertainty is putting downward pressure on #Bitcoin. In #France, President Macron's early election saw a landslide victory for the opposition, the National Rally, signaling the end of over 50 years of center-left rule since Charles de Gaulle. This regime change has bond traders in a state of confusion, unsure about the future of French bonds and the broader impact on capital markets.

In the US, the first presidential debate between #Biden and #Trump on CNN has highlighted Biden's age issues, boosting Trump's approval ratings. A potential second Trump term promises even harsher tariffs and stricter illegal immigration policies. The current stability in consumer prices is largely due to the low-wage labor provided by illegal immigrants. If Trump enforces strict deportations, labor costs will rise, leading to increased inflation, making it less likely for the Fed to lower interest rates. Former Treasury Secretary Larry Summers warned that Trump's tax policy, which involves lowering domestic taxes while raising tariffs, could lead to severe stagflation.

All these factors point to a rise in uncertainty. Capital tends to flee from unpredictability to more stable environments. With the right-wing gaining seats in the #EU Parliament and the National Rally's victory in France, institutional funds are reportedly flowing into the #UK, which has left the EU. Similarly, the #Nasdaq and S&P 500 are climbing higher as the likelihood of a US interest rate cut diminishes, attracting more money into high-return areas like the AI-driven growth in major US tech companies. This trend explains why the US stock market capitalization accounts for 40% of the global market.

So, what does this mean for #Bitcoin in the shifting international landscape? If Trump’s second term leads to higher inflation, the government will likely issue more bonds to counteract the economic slowdown caused by rising prices. This would result in a decline in the value of fiat currencies. Continued isolationism and de-globalization in Europe will likely devalue the Euro against the Dollar, prompting the #ECB to adopt more accommodative monetary and fiscal policies. The inevitable decline in fiat currency purchasing power underpins the long-term upward trajectory of Bitcoin. This fundamental reason for Bitcoin's existence is to provide an alternative as traditional currencies devalue.

Therefore, there's no need to worry about Bitcoin dropping below $60,000 or breaking the 200-day moving average. Instead, consider it a buying opportunity before the next major bull run.
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