Binance Research made the specious claim that the that latest bitcoin price spike was caused by President Donald Trump’s tariff rhetoric. | Source: NICHOLAS KAMM / AFP (i), Shutterstock (ii). Image Edited by CCN.
Binance Research, the research arm of the world’s largest crypto exchange, claims that President Donald Trump caused the latest bitcoin price spike.
Binance Research made the specious claim on Twitter, where it noted: “BTC has rallied, together with multiple safe-haven assets, after Trump’s latest tariff storm. Will the trade war continue to be a catalyst for Bitcoin price growth?”
Reminder: Correlation is not causation
Specifically, Binance Research suggested that the bitcoin price rallied this week due to Trump’s escalating tariff war with China.
The implication is that mounting geopolitical uncertainty is causing investors to seek refuge in “safe haven assets” such as gold and U.S. Treasury bills. Safe haven assets are believed to offer protection against stock market downturns.
To buttress its claims, Binance tweeted a chart that apparently showed a correlation in the price movements of bitcoin, gold, the 10-year U.S. Treasury bill, and “safe haven” currencies such as the Swiss franc.
Most people know that correlation is not causation. However, Binance tried to tie Trump’s trade rhetoric to rising bitcoin prices. It offered no other evidence to support this flimsy contention.
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