Wednesday’s yield curve inversion should have been bullish for bitcoin since it’s a major recession indicator, but the BTC price fell. Market observers explain why. | Source: Shutterstock
That’s because it signaled a recession, which tanked the stock market. It was just about a week ago that the bitcoin price rose in the wake of macroeconomics that sank the stock market. Observers cheered that finally the crypto was being seen as a safe-haven asset.
Considering that didn’t happen this week, it begs the question: What’s up with that?
CCN spoke to crypto observers to gather their thoughts about the factors that are mitigating bitcoin’s price rise.
U.S.-China trade war playing role in BTC’s price moves
Wednesday’s main yield curve inversion should have been massively bullish for bitcoin since it’s a major recession indicator. However, we saw the crypto’s price fall.
Igor Chugunov, CEO and Founder at Credits Blockchain, talked about bitcoin’s value growth in the wake of the trade war between the U.S. and China, saying:
“Taking into account the recent news background related to the U.S. and China trade war, most researchers were confident in the continuous growth of bitcoin value. Researchers are convinced that this trade war strengthens the role of the dollar in the global monetary system and also has a negative impact on other fiat currencies like [the] yuan.”
Chugunov added that the Chinese found the crypto to be a safe haven but are starting to leave as trade tensions have eased and pressure on the yuan has stopped.