Why Bitcoin Is Affecting From US-China Trade War?
By Mrudul Chauhan on ALTCOIN MAGAZINE
There is no denying in the fact that everyone out there has kept their eyes on bitcoin in 2019, you might argue that it’s not true but at the back of your mind you always have that urge to see bitcoin performance in 2019 including the dramas attached with it.
The major reason for this drama play of Bitcoin in 2019 which helped it raise towards the mark of $12,000 is the US-China Trade War.
“Bitcoin is proving itself to be a safe haven for investors at times of drama in the global economy — and cited other examples where BTC’s value rose as traditional stock markets took a tumble” — Silbert said it and it’s true that we have witnessed Bitcoin performing extremely well.
U.S.-China trade war has seen both superpowers slap tit-for-tat tariffs on each other’s goods, which ultimately resulted in the depreciation of Chinese yuan, which spurred bitcoin’s bull market in May due to local investor uncertainty.
Moreover, the trade war is shifting from tariffs to technology, which immediately affects digital assets. Which points out a major worry factor to the Investors named “Lack Of Globalization”.
Panos Mourdoukoutas said: “US Treasuries have served as a store of value for years during the uncertain times caused by global geopolitical events, trade wars included. “That’s why US Treasuries have also been rising along with Bitcoin as the US-China Trade tensions flared up in recent months”.
Countries that have traded surplus with the US would store their excess dollars in the US bond markets.
“China has parked over one-trillion in US Treasuries,” Mourdoukoutas says, adding “Beijing may begin selling them off if the trade war escalates”, which “could be bullish for competing Treasuries, and for Bitcoin.”
Also, the possible reason for this bullish market is the trail and tested arguments on “China Banning the Cryptocurrency Trading”.
Now, these were some interesting factors in the US-China Trade war affecting the Bitcoin bullish market. Sure there are many other factors too in this and stay tuned for the upcoming updates.
