Trump’s China Traffic Might Have Contributed To The Recent Bitcoin Price Boost
The President of U.S Donald Trump imposed a new round of tariffs for China and these tariffs might have contributed to helping Bitcoin price to increase, or so the theory goes in the crypto sphere. The move, due to take effect on Sept. 1, would intensify a trade war between the world's top two economies and crude consumers that has disrupted global supply chains and roiled financial markets.
Tariffs on another $300 billion of Chinese imports, nearly all goods from China will be subject to import taxes, and Trump says they generate billions of dollars in revenues for the U.S. Treasury from China.
…during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%…
— Donald J. Trump (@realDonaldTrump) August 1, 2019
The news saw the Dow Jones Industrial Average closed 280 points down for the day, the S&P 500 shed 0.9 percent, and the Nasdaq fell by 0.8 percent. But the increase in tariffs could potentially be good news for Bitcoin. Bitcoin jumped 40% in the space of a week after 25% tariffs on $200 billion worth of Chinese goods went into effect.
Ever since this trade war started, there has been a looming concern that China might use its holdings of US bonds to flood the market and destabilize the US. China holds more than $1.1 trillion worth of US debt, an amount that could have catastrophic consequences on a global scale if China decides to large-scale sell.
Popular crypto analyst Josh Rager says:
“$BTC Weekly Chart: Currently, Bitcoin price is testing the resistance level $10,833: Price must not only break but want to see the price above on the weekly close in less than 48 hours. Support needs to hold above previous resistance at $10,590. Close above $10,833 is bullish.”
$BTC Weekly Chart
Currently, Bitcoin price is testing the resistance level $10,833
Price must not only break but want to see the price above on the weekly close in less than 48 hours
Support needs to hold above previous resistance at $10,590
Close above $10,833 is bullish pic.twitter.com/sRmtp02LaA
— Josh Rager 📈 (@Josh_Rager) August 3, 2019
Cryptocurrencies act in a decentralized way independent from any government or institution. Since there can’t be one governing body that controls the production and flow of cryptocurrencies like it can be done with regular currencies, it’s very hard to predict how specific cryptocurrencies will perform under the current conditions.
While this sovereignty might seem scary to those who are looking to get into the crypto world, it also has a positive side. Cryptocurrencies are basically immune even to the worst possible effects and outcomes of this trade war.