Last week when Bitcoin hit its year high of $8,300, this coincided with an announcement by the U.S president, Donald Trump, imposing new tariffs on $200 billion of Chinese goods from 10% to 25%.
The announcement has since seen China respond by increasing tariffs of U.S goods worth $60 billion. The ongoing trade has hence been speculated to be the reason for the recent bullish market. Triggered by the U.S and helped on by the Chinese in their response. So possibly thanks to the trade war, Bitcoin has had a great boost forward.
Things To Get Worse Before Better, Perfect Chance For Bitcoin?
Currently, the trade talks between the U.S and China seem to have hit a roadblock and tensions seem to be rising. In fact, one analyst believes that things will get much worse before getting better and this could be the perfect opportunity for Bitcoin to rally further.
Curtis Chin, an Asia fellow at the Milken Institute and former U.S. ambassador to the Asian Development Bank, in an interview with the CNBC stated that things were going to get worse before getting better citing that China was known to be vindictive to nations it does not particularly like.
This means that China is unlikely to back off and Chinese President Xi Jinping will be looking to show that he is in charge. The two governments (Donald Trump and Xi Jining in particular) are also looking for a face-saving solution and in the process might have to drag out the trade-war.
He also added that when Tencent Video delayed the broadcast of Game Of Thrones Finale on Monday, this could have been a way for the Chinese government to send a political message.
“It shows you that China is ramping up its nationalism as it tries to think through how to deal with this U.S.-China back and forth right now,” said Chin.
In the weeks to come and if indeed this trade war is triggering the bullish market, we can expect Bitcoin to continue enjoying more gains as traders and investors from these two superpowers seek haven in Bitcoin. It is no secret that due to political turmoil around the world that Bitcoin has become more popular with economic anxiety rising and so far things continue to look good for Bitcoin.
Though at the time of press Bitcoin continues to struggle to get above $8,000, soon the trade war could see it jump above $10,000.