The trade war between the U.S. and China has been impacting the Bitcoin price. There is also a high chance for the trade war to linger with no headway made during the U.S./China trade talks. If this theory plays out, then it could potentially push Bitcoin over $20,000 by December or sooner, according to Clem Chambers, CEO of stocks and financial data website ADVFN Forbes’ report on September 3, 2019.
Trade War’s Impact on Bitcoin’s Price Could Go Either Way
Per the report, the U.S. and China trade war will either lead to a surge or decline in Bitcoin’s price. A spike in Bitcoin’s price means the meeting between both countries did not end well. The latter was evident in the crypto asset’s spike on Monday even though it is still uncertain what the two countries have decided.
On the other hand, each time Bitcoin makes a massive dump in price, it brings to mind that the talks could have ended positively. Thus, when good news hits the Asian Bitcoin market, there is a dip in the asset’s price.
U.S. Trade Representative’s Office Announcement Tanks Bitcoin’s Price
An instance is an announcement by the U.S. Trade Representative’s Office on August 13, 2019, that the U.S. will be delaying tariffs on certain Chinese goods. When the news began to circulate, Bitcoin, which was trading at $11,400 declined to the $10,900 zone within a few hours.
Based on this model, Clem Chambers believes that Bitcoin can trade above its all-time high of $20,000 by Christmas or sooner. In his opinion, the talks between the U.S. and China could become soar since either country wants to be on the winning side. And like most wars, either party wants to win irrespective of the losses being incurred. As a result, the trade war might continue longer in the short term.
Possible Outcomes if the Theory Holds or Fails
If the theory pans out, millions worth of fiat is bound to spill over into the crypto market, which could potentially spike Bitcoin’s price. Nonetheless, if the theory fails, it would be evident in another dip in the market. Gold and other traditional assets will also pick up in price, slowly.
Several crypto analysts, on the other hand, are expecting a surge in the crypto market soon. Peter Brandt, a veteran trader recently opined that Bitcoin is in its fourth parabolic phase which could trigger its surge towards $100,000. Raoul Pal, another analyst, said this might be the last time for those who do not own Bitcoin to board the rocket ship.