Bitcoin Price Expected to Skyrocket if China Dumps US Treasuries as Trade Wars Heat Up

Bitcoin’s price is expected to climb fast if China starts selling US treasuries. Trump’s trade war with China could cause the country to sell off US treasury bonds. The bonds are worth $1.1 trillion US Dollars if sold China will have to find another place to invest their capital.

As sanctions against China continue, Bitcoin is gaining value, becoming a new important world currency. Chinese investors have decided to put their money into cryptocurrency rather than into gold as they have in the past. As more and more investors put their gains into crypto, BTC naturally is gaining in price.

Along with China’s investors putting money into cryptocurrency, the country may decide to sell their bonds back the issuer. The bonds have been used to resemble a store of value when issues arose amongst foreign countries, like those of a political nature of the current trade wars.

It’s because of this that treasuries like Bitcoin have been gaining value. Unless the US backs off in its trade wars with China, the country may start selling them off. If that happens, the price of US treasuries, as well as Bitcoin will start to climb quickly. After selling the US back their treasuries, China will have to find another country to buy from.

It’s likely it will be either Japan or Germany, the two countries with the best treasuries following the US. Even so, profits from Japan and Germany are far less then they are from the United States.

Another possibility is that the Chinese Government will start to invest into Bitcoin since it is growing so rapidly in price. Even though there is a chance of this happening, it is rather small and unlikely, but it does exist. One reason it may not happen is because of China’s ban on cryptocurrency, the country’s government generally holds a negative attitude towards it all together.

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