After five months of ceasefire, the US-China trade war is getting uglier by the day–and that’s good news for Bitcoin.
The Many Reasons Bitcoin Price Is Pumping
Ask any key industry player or analyst why Bitcoin price is rising and they’ll probably give you a different combination of answers.
Front-running, coordinated buying, big business moves, and even the role of Bitfinex and Tether are all perfectly plausible reasons. But perhaps there’s one greater driver here that’s luring investors to Bitcoin: the US-China Trade war.
The US-China Trade War Is Getting Uglier By the Day
Last week, president Trump raised tariffs to as high as 25 percent on $200 billion worth of annual Chinese imports. He also threatened to impose further hikes on an additional $300 billion worth of Chinese goods.
Moreover, on Wednesday, the Trump administration took dramatic action to add Huawei its exports blacklist and effectively ban the company from selling its technology in the U.S. market.
This move against the Chinese mobile giant is certain to provoke a catastrophic response from Beijing, and its effects will be felt around the world. It’s an act of aggression from the U.S. that will not only hurt the Chinese technology company but also impact global technology supply chains.
Paul Triolo, a technology policy expert at Eurasia Group risk consultancy quoted in FT, remarked:
The US has basically openly declared it is willing to engage in a full-fledged technology war with China
As stocks plummet amidst this dangerous game in which there can only be losers, all the action is giving Bitcoin a boost. More than one analyst has called Bitcoin a “safe harbor asset” like gold.