The U.S-China trade war continues to be the gift that keeps on giving. And in the coming days, it is set to give Bitcoin the fuel it needs to get back to its year highs. The trade war is expected to get heated up in the coming days and this is just the rocket fuel Bitcoin needs to surge and break recent resistance positions.
Not only is the date for increased tariffs by the U.S approaching, but Washington has announced even further measures towards China. This might see talks fall out and the war reaching ‘full-blown’ levels.
The U.S And China Determined To Make Bitcoin Look Good
The most recent showdown began with U.S President Donald Trump announcing an additional 10% tariff on goods worth $300 billion coming from China. As expected China responded with measures of their own. Beijing followed this up with additional tariffs on goods worth $75 billion. China further weakened the Yuan in the days that followed to hit a new decade low.
There was no doubt that this would provoke Donald Trump who has recently insisted that China, over and above taking advantage of the U.S in trades, has been manipulating its currency to get ahead. It was just a matter of when before he responded.
In the last couple of hours, Trump has announced additional tariffs. The president tweeted:
..“the 250 BILLION DOLLARS of goods and products from China, currently being taxed at 25%, will be taxed at 30%.”
“…the remaining 300 BILLION DOLLARS of goods and products from China, that was being taxed from September 1st at 10%, will now be taxed at 15%.”
The date for this tariff is fast approaching and the talks just keep on escalating. In the coming week, we might see China respond to Trump’s recent announcement and if history is anything to go by, this will further see the trade war worsen.
Some analysts have in the past stated that the trade war will go on to 2020 with Trump relentless to fulfill his campaign promise and China holding up to see who wins the next election before making any deal. The two presidents are further too determined to show authority and world dominance making a deal that saves face much harder.
Bitcoin (BTC) Responds But Strong Resistance Persists
Shortly after the U.S President made the announcement, there was an immediate response from Bitcoin. The digital asset jumped from around $10,200 to a little above $10,400. However, the $10,500 resistance remains unbroken.