Bitcoin (BTC) Price in USD Could Soar to New Highs at $25,000 Due to US-China Trade War
- Prominent crypto analyst, Oliver Isaacs believes bitcoin (BTC) price could hit the $25,000 mark by end of this year.
- Isaacs thinks geo-political tensions between US and China, in addition to economic uncertainty in third-world countries, could potentially lead to an increase in BTC price.
Many analysts have formally predicted that the best time for Bitcoin will be when the world is going through times of economic instability. We could see cases in Iran, Venezuela, and Turkey. When their national currencies started to fail, we could see the rise in Bitcoin purchases in their country. Now, the US-China trade war can have similar effects.
Widely-followed Bitcoin analyst Oliver Isaacs thinks that Bitcoin has the potential to hit $25,000 by the end of 2019 or early 2020.
— Oliver Isaacs (@oliverzok) June 5, 2019
Political, Economic Certainty Could Lead to Increase in BTC Price
The stress amid the US and China is starting turbulence in traditional markets. The correlation between the US Dollar and China’s yuan is getting increasingly volatile. A USD is worth approximately 6.9 yuan which is alarming, to say the least. A weaker yuan can cause investors to leave China which would lead to large outflows of capital. Moreover, Chinese firms which have USD-denominated debt are going to find themselves in a situation where their loans have become more costly. The trade war is causing grief for US companies too. The S&P 500 is down about 3 percent since the beginning of the month.
“There are multiple drivers behind the recent resurgence. There are geopolitical, technological and regulatory drivers. The net effect of the trade war between the US and China has led to a sudden interest in bitcoin as a hedge on investments.”
Isaac points out that an increasing number of people, especially the younger ones, are beginning to view bitcoin as an established safe haven that operates in a market which is finally being protected through regulatory oversight. There is also an enhanced adoption for bitcoin and other cryptocurrencies, with major organizations like Microsoft, Amazon, Starbucks, and Whole Foods.
Weaker Yuan Could Lead to Higher BTC Price?
According to Christopher Vecchio, a senior financial analyst, it would be challenging for Bitcoin, the world's most dominant cryptocurrency, to again reach the $20,000 mark in the coming months. However, the Vecchio also said that this could happen if the yuan continues to weaken.
He was quoted as saying:
“In an environment where the global financial system looks like it is potentially at risk because of the world’s two largest economies going at odds, people may be looking for alternative avenues to find ways to circumvent the capital controls being put in place to move their money around without the Chinese or U.S. government taking stock of it.”
It's quite possible bitcoin and other cryptocurrencies could perform better than traditional assets such as shares of common stock or even the gold bullion.
However, it would be difficult to assess how cryptocurrencies would perform in relation to other more established asset classes in the long-run since they're still in their preliminary stages of development.
Bitcoin’s price is $49,979.26 BTC/USD exchange rate today. The real-time BTC market cap of $931.9 Billion currently ranks #1 with a chart dominance at 62.37%, daily trading volume of $13.92 Billion and live coin value change of BTC 3.40 in the last 24 hours.