Bitcoin [BTC] has been riding the bull wave for some time now. It crossed the $8000 mark and the 24-hour price saw a 1.40% gain, at press time. Many top analysts and economists associate this gain to the overall drop in the global stock market’s value. Coin Share’s CSO, Meltem Demirors, made news after she commented that there could be an indirect correlation between trade wars and the global stock market scenario, while also adding that it could be a factor in Bitcoin’s recent rally.
Dovey Wan, Co-founder of Primitive Ventures, hinted at the similarities in the uptrends of Bitcoin and USD during the ongoing trade war, in a tweet dated May 14.
Maybe just a coincidence but you tell me
Bitcoin is winning the trade war while China and US is a lose-lose pic.twitter.com/8FmVcaHjjh
— Dovey Wan (@DoveyWan) May 13, 2019
The trade war between the US and China resulted in the Chinese Yuan dropping by 2% against USD. In response to this, prominent figures in the cryptocurrency world claimed that Chinese investors have invested in alternative holdings such as Bitcoin and Dollar.
According to a Forbes report, Phillippe Bekhazi, CEO of XBTO, shared similar thoughts as Wan,
“There’s a booming business in stable coins because people are getting money out of China and Hong Kong.”
Bekhazi also claimed that several people and traders were selling and dumping their native currencies and adopting stablecoins such as Tether.
Reports also suggested that Gary Shilling, former Chief Economist and President of A. Gary Shilling said,
“Consequently, people look for any way they can take their money out … I wouldn’t be a bit surprised that bitcoin is a beneficiary of that.”
Dave Chapman, Chairman of OSL, a Hong Kong-based OTC firm, also gave his inputs on the subject, making an unconfirmed guess that China contributed to 20% of the crypto-trade volume, a percentage that is bound to increase if present trends continue.