Was worn the Bitcoin rally by the trade war between USA and China?
Home News the Bitcoin rally by the trade war between USA and China?
Marcus Misiak –
Mike Novogratz, CEO of Galaxy Digital recently stated on CNBC that US President, Trump plays with his trade war against China, an important role in the recent rally of BTC. Other voices from the crypto-industry confirm this assumption.
Bitcoin started with a low of 3,754 K US dollars in the year, and since April on the rise. In may, the price of Bitcoin has broken the $ 8,000 mark. On CNBC’s Squawk Box, Novogratz said that he believes that Trump’s has contributed to a trade war with China, together with the increasing acceptance in the industry, to Bitcoin’s trigger rise:
I would say it certainly has the feel that Chinese money is flowing in this room, in the crypto. Why has Bitcoin risen from 4,000 to 8,000 dollars? Because of Facebook, because of Microsoft. I think because of this trade war, and because a lot of the sale was made.
Microsoft has recently announced the establishment of a decentralised identity platform on the Bitcoin Blockchain known, and Facebook is working according to Reports intensively on the development of a digital currency names GlobalCoin, probably a Stabilcoin.
Other voices confirm the connection
Arthur Hayes, co-founder of the crypto-exchange, BitMEX has explained in his recently published edition of “Crypto Trader Digest” that certain measures between America and China could lead to a demand for BTC. He pointed out that the Chinese Yuan with the increasing trade war and the potential for the People’s Bank of China to tighten Credit standards, could continue to lose value against the US Dollar, and said:
The OTC market is pulsating, and it had been created (on the OTC market) and politically acceptable ways to allow buyers and sellers to meet in China. The key number is 7.00. If the PBOC allows the Yuan, this is the Level to break through to fight to be normal, Zhou’s in order to get Bitcoin and other Kryptos in the Finger. Similar to 2015, a strong and sudden Yuan could lead to the devaluation of the beginning of another epic bull market.
Another report comes from the South China Morning Post. This revealed recently that BTC came after the announcement of tariff changes in Chinese imports by Donald Trump to a recovery. At the same time, the Yuan fell, allegedly, to the lowest level in six months, since China seemed to fight back against Trump.
In addition, Garrick Hileman, the Director of research of the industry explained Start-ups Blockchain.com that his Team has indeed found a “strong inverse correlation” between the two Assets. He adds that Blockchain.com can’t “be 100% sure that the recent increase in the price of Bitcoin is driven by trade tensions”. As in the Twitter Post is below, see, are, strong connections in the Charts, however, obvious.
Some consider this assumption, however, controversial. Alex Krüger has pointed recently to the fact that the Bitstamp Crash has shown, a few days ago that there is a connection between BTC and the trade wars “nonsense” is. Furthermore, he concluded that the recent rally of Bitcoin was probably due to a “handful of parties”.
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