Aug 23, · Gold and bitcoin react to the U.S./China trade war. Credit: ADVFN. We can see gold getting a little lead on bitcoin (BTC) in London when the China retaliation news hits but look at Author: Clem Chambers. Sep 30, · The ongoing trade war between China and the United States could be the boost that Bitcoin requires to reach its all-time high.. China and the US are two of Author: Insights Network (INSTAR). Trade war and Bitcoin - When, Why, How CAREFUL! Trump-China trade war a boon for bitcoin - New — One crypto exchange market! Any Currency - touts itself as a cryptocurrency has risen by the co-creator of the with the looming trade reacted negatively to an of Bitcoin returns.
Bitcoin trade warsBitcoin Is Already Winning the US and China Trade War
A weak yuan, a high dollar, the certainty of Chinese retaliation, and growing supply pressures on crude oil pushing up its price, are all causing a perfect geopolitical storm for investors to seek safe harbor assets.
The two countries have been manipulating their currencies to make-up for failed trade talks, according to Karasulu. Like Bitcoin and other major cryptocurrencies.
Karasulu agrees. No country will devalue it in a currency war over trade tensions. Economists at global investment bank Goldman Sachs believe there to be no end in sight to the ongoing US-China trade war. Although damaging to economic interests in both nations, the lack of resolution may well be bullish for Bitcoin. Economists from the global banking giant also stated that they believed a recession to be likely.
In response, China has threatened to stop buying US agricultural products. The bank does not think a resolution likely in As part of the ongoing trade war, the US has accused China of manipulating its currency to damage the profitability of American exports. China denies doing this.
Whatever the cause, the yuan has been depreciating in value against the dollar a lot as of late. If such a theory is correct, Bitcoin may benefit greatly from the continuation of the trade war and a recession following it. If capital has already been flowing from the yuan to BTC, it stands to reason that it would continue during a prolonged trade war.
To that end, bitcoin is not subject to the same forces as normal currency. This is why people who feel less trust towards the government see it as an alternative, said Aries Wang, cofounder of Bibox, a digital asset exchange that uses artificial intelligence technology.
Take recent trading for example. Having an uncorrelated asset can be a good way to balance a portfolio, Kuo said. For example, he points out that an investor could have higher returns in bitcoin than gold, another safe haven asset that has hit recent highs. Countries experiencing currency issues have seen bitcoin trade at a premium on local exchanges, according to Daniel Dixon, cofounder of Interdax, a cryptocurrency trading platform focused on derivatives.