U.S. Trade Tariffs To EU, Mexico And Canada May Help Bitcoin Price
Bitcoin has been in a bear market since the beginning of the year and the famous currency cannot recover part of the value lost. Some crypto enthusiasts were waiting for the Consensus conference that took place in New York City to modify Bitcoin’s trend, but, as we have experienced, it did not change.
But there may be a new situation that could push bitcoin prices up. US President, Donald Trump, has decided to impose steel and aluminium tariffs on different important trading partners, including Canada, Mexico and the European Union. This has increased the market volatility, something that could be very positive for Bitcoin, that could become the natural hedge currency against these swings in the market.
Moreover, some central banks around the world have been showing their support for blockchain technology and virtual currencies. Just lets mention Mr. Mark carney, governor of the Central Bank of England, who has been talking very positively about Central Bank Digital Currencies – also known as CBDCs.
Another important figure, Xi Jinping, Chinese president, supported blockchain technology saying that these new developments (including distributed ledger technology) could change the way institutions work. This could be just a matter of time before the People’s Bank of China embraces it.
Malta is one of the most attractive places for virtual currency and blockchain companies to settle their operations. As regulations expand all over the world, this European island has changed the way companies relate with local authorities. Countries like South Korea or Poland are imposing hard regulations on companies that operate with these technologies, and Malta or Switzerland have become the best crypto hubs in the continent.
In the future, Bitcoin could receive an important support from new buyers, institutions and regulations but it does not mean that the price will be imminently feel this pressure.