Bitcoin –In line with the latest bull-run that’s maintained in the cryptocurrency market, different analysts have begun issuing out their sentiments on the possible underlying factors behind the market rally.
However, a reputable and senior market analyst at eToro, Mati Greenspan, gave an analysis on the present cryptocurrency market trend, and the embargo threat recently issued out by the US president Donald J. Trump.
President Trump, on Friday March 29, threatened that he would close down the United States’ border with Mexico this week owing to the series of illegal immigrants into the country. Subsequently, the crypto market reciprocally resume on the upside trend on Monday April 1, sending the value of Bitcoin above $4,600 from its previous $4,100 resistance level.
Even though the above seems like a flimsy evidence for Bitcoin price rise in the market, Mati Greenspan averred the emergence of the ban threat resulted in the price rise for Avocados.
What Is The Relationship Between Avocados Price And BTC Price?
Greenspan said, yesterday, the price of avocado in the United State spiked by 35% following Trump’s statement.
Giving an analytic review of the grocer price trend in the market, the executive editor at Bloomberg, Tracy Alloway said Avocado price is tracking Bitcoin.
Avocado prices are clearly tracking Bitcoin. pic.twitter.com/JgxrwnzWcw
— Tracy Alloway (@tracyalloway) April 2, 2019
Greenspan also claimed there is an “an extremely high correlation between bitcoin and… avocados.”
Avocados went in a different direction compared to other markets following Donald Trump’s statement on Friday.
The price rise of Avocados in the country came as a Déjà vu. It is a resultant effect. About 75% of the avocados consumed in the United States are imported from Mexico, thus giving rise to anxiety in the market as people demand for more Avocados with expectation that the grocer supply chain would be truncated.
Greenspan said although in the case of Avocados, the present market effect is temporal, but the above chart reveals a possible scenario in a low liquid environment. Nevertheless the created number of BTC cannot be altered from 21 million BTC but a low liquidity can result in a permanent price spike.
However, as analysts continue signal the possible effect of the embargo on the United State market, Trump remains adamant, claiming that ‘Security is more important to me than trade’.