In the past, bitcoin has acted as a safe haven for investors worried about the political instability and the performance of other asset classes.
U.S. equities saw a sell-off this week before rebounding earlier this week while the political establishments in America and Brazil are facing potential scandals.
Investors are concerned that President Donald Trump might not be able to deliver on his promise on tax reform, deregulation, and infrastructure spending. At the same time, a report on Tuesday said that Trump allegedly asked ousted FBI Director James Comey to “let go” of the investigation into former national security advisor Michael Flynn.
Elsewhere, Brazilian President Michel Temer allegedly authorized bribes to silence a witness in a corruption scandal.
Political turmoil in the world could be supporting bitcoin, analysts said.