Bitcoin Bulls Fodder: Trump Says The US Will Impose Tariff On Another $300B Chinese Goods, Starting Sep 1st
- Round 2: Trump’s $300 billion China tariff threat
- 2nd uptrend phase for Bitcoin? The price goes to $10,500
- Trump hints at abolishing the Fed, Long term bullish for bitcoin
President Donald Trump took to Twitter on Thursday to announce that the US will be imposing 10% tariffs on another $300 billion worth of Chinese goods, effective September 1.
The surprise tariff announcement came after the US and China restarted the trade talks in Shanghai this week. This has been the first in-person trade talks since G-20 truce.
Before Trump's tweet came, the White House said on Wednesday that the meeting was “constructive” and that China confirmed its commitment to increase the purchase of US agricultural exports.
Trade negotiations, according to White House Statement will continue in Washington in early September.
Round 2: Trump’s $300 Billion China Tariff Threat
The trade battle between the world’s two largest economies has dragged on for more than a year and a half now. First, Trump shocked the markets in May by hiking the tariff to 25% from 10% on $200 billion worth for Chinese goods, with China quick to retaliate.
It’s still unclear what caused Trump to end the cease-fire with the new tariffs, where US agricultural products remains a big sticking point in the trade conflict.
Later in the day, Trump also said that the new tariffs could even be raised to above 25%.
Just a day before this, the Fed made a 0.25% cut in interest rates, the first time since 2008 recession and Trump’s tariff announcement resulted in erasing the gains made by Dow Jones Industrial Average made earlier in the day.
Fodder For Bitcoin Bulls
Last time, the trade war intensified Bitcoin enjoyed the tension between the two countries, this time as well experts are hoping for some action.
“BTC catching a bid now. Would be very bullish to see it take off on high volume soon,” said economist and trader Alex Kruger.
After a red July, first Bitcoin went into five digits and then today went as high as $10,583. At the time of writing, BTC/USD has been trading at $10,520 with 24 hours gains of 5.81% while managing the daily trading volume for $1.1 billion.
There is even more fodder for bulls as Trump goes to hinting at abolishing the Fed.
Trump hints at abolishing the Fed.
He's sending a message: The Fed better starts delivering lower rates and ample liquidity, or he'll do his best to interfere.
This is becoming a recurrent theme, one which is long term bullish for bitcoin and gold. https://t.co/IpXA3St269
— Alex Krüger (@krugermacro) August 1, 2019
Trump is actually good for Bitcoin. Whether it is a trade war or attacking the Fed for deeper rate cuts, devaluing USD, or now hinting at abolishing the Fed, he keeps on creating a bullish scenario for the leading cryptocurrency.