Some may wonder if the recent Bitcoin upturn may have something to do with the US-China trade war. Of course, each conclusion is speculative in the end. However, more and more experts and industry insiders believe that such a connection exists.
Barry Silbert, the CEO and founder of Digital Currency Group, is one of the industry insiders who blames the trade dispute as a windfall Watch the sails of Bitcoin. In a recent interview with Fortune, Silbert pointed out Bitcoin's recent major rise. This occurred after the US-China trade talks failed earlier this month. He said:
“Of course, it's interesting that the [Bitcoin] price started to rise and move up and to the right as the trading calls were canceled.”
Is Bitcoin immune to a global slowdown?
Silbert also pointed out that bitcoin is a” non-correlating asset “. look. This means, according to Silbert, that it is relatively immune to the fluctuations of the global economy. He cited two cases that threatened the stability of the global financial sector but did not negatively impact the Bitcoin price. So he explained:
“Looking at the last five years – when voting on the” Brexit “bitcoin rose. Bitcoin rose as they debated the “Grexit”. “
Silbert therefore assumed that Bitcoin could outperform traditional assets, such as gold, when it came to a major economic crisis. In support of his statement, he pointed out that central banks in the US and elsewhere have amassed much gold in recent years. In the case of a downturn, this gold will probably be sold first.
“It does not necessarily mean that the money goes into Bitcoin. It simply means that there is no forced pressure to sell Bitcoin. “
Other experts also see a correlation
Garrick Hileman also sees a connection between the trade war and the Bitcoin Rally. Hileman is a researcher at the London School of Economics and head of research at Blockchain.com.
In an interview with the South China Morning Post, Hileman said he and his colleagues had a strong correlation. This consisted of a decline in the Chinese renminbi (RMB) price and the recent rise in Bitcoin's price.
Hileman acknowledged, however, that the relationship was not 100% certain. However, he also pointed out that he and his colleagues would not make that observation for the first time. There are also other significant increases in Bitcoin's price, “if worries about the yuan [renminbi]” come up.
According to Hileman, Bitcoin is consolidating its position as “digital gold”. At the same time, a growing number of investors are turning to Bitcoin to hedge against various macroeconomic risks. So it might be worth buying Bitcoin to expand its portfolio.
Author: Peter Joost – Source Post: https://www.kryptovergleich.org/profitiert-bitcoin-kurs-btc-von-donald-trumps-aggressiver-haltung-im-handelskrieg-between-the-usa-and-china/
Disclaimer: CoinNewsDesk.com is a crypto news portal, financial discussion forum, and content curator / aggregator. Articles on Coin News Desk are provided for entertainment and information purposes only. We are not an investment advisor and do not provide financial advice.
We can not review all articles posted on CoinNewsDesk.com. Please independently research and verify any information here before relying on it as fact. It is also important to do proper due diligence and analysis, including consulting a professional financial advisor. No content on Coin News Desk makes any recommendation to enter into any type of investment or engage in any investment strategy on this website.