Bitcoin Taking Advantage of US-China Trade War
Bitcoin is performing as a store of value assets in 2019, as the US-China Trade War rages. Bitcoin and Gold performing similar in this financial situation.
Chief Marketing Officer (CMO) of blockchain consultancy Rhythm Technologies, Chris Reinertsen said in an interview with Forbes that investors are pouring into Bitcoin in addition to traditional safe-haven assets.
He said in the interview “There is a flight of capital to safe-haven assets across the board, which now includes Bitcoin.”
He further added:
“Throughout the last few years, we have been seeing the trend of Bitcoin increasingly becoming fundamentally correlated to more macro moves as increased economic uncertainty in the world increases.”
Bitcoin as Store of Value
After the recent tweet of US President Donald Trump, implementing sn extra 10% traffic on an additional of $3 Billion Chinese goods. Just after the tweet, Chinese Yuan (national currency) hit badly and was made a new low after the 2008 recession and hit 7.1 USD.
The key level for Yuan is 7 and is now trading above it. More people are now looking to invest in assets whose values increase with US dollar example Gold and now Bitcoin.
Bitcoin value is from the past weekend increase by more than 25% and made a new monthly high of $12,300. If we compare charts of Bitcoin and Yuan both looks same, when Yuan values drop in US dollar Bitcoin see an instant pump and vice-versa.
Twitter users posted various interesting facts about the US-China trade war and Bitcoin Price surge. User Lightcrypto explained the relationship between Bitcoin and Yuan from last weekend.
Another twitter user Crypto Money Mantra posted that Bitcoin is fulfilling its real purpose now.
Bitcoin performing as designed, BTC launched during financial crisis 2008-2009 to perform well is instable or stock market crash situation. It’s completely justifying its role now when all worldwide financial markets are crashing down.
