Has Renewed US-China Trade War Caused Bitcoin’s Rise to $10.5k? Greenspan Suggests

Steve Bannon, the former White House Chief Strategist who served for 7 months under the Trump administration recently spoke on the trade war between the US and China. He said,

The trade war is “the defining event of our time,” says Steve Bannon. “This is history in real-time….This is the fundamental reason why Donald Trump is the president of the United States.”

The leaders of the two countries met along G20 sideline last month and agreed to ease on increasing trade tariffs. However, Trump has accused China of ‘not coming through’ on their promises made during the meet.

The Chinese were expected to buy agricultural products from the US. Hence, he announced a 10% tariff on an additional $300 billion of Chinese imports on Tuesday. The Chinese Yuan has further dropped by 0.55% on a daily scale on 2nd August.

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CNY/USD 1-Day Chart on IDC (TradingView)

During May of this year, the Trade War was at its peak. Moreover, a strong correlation between the falling Chinese Yuan and gains in Bitcoin suggested that Trade War might be the cause.

While correlation does not mean causation and there are a lot of other things affecting the demand, this could be one of the reasons for the rise in Bitcoin’s price. Mati Greenspan, the Senior Market Analyst at eToro reiterated it in his mailer early this morning, he said,

Even though correlation does not equal causation and we still don’t have enough data, it’s difficult to ignore the coincidence that bitcoin rose sharply in May and June while the US and China trade tensions were at their height. Today, once again we see the tension rising between the world’s two largest economies and Bitcoin is on a firm footing.

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BTC/USD 1-Day Chart on Bitstamp (TradingView)

The price of Bitcoin at 13: 50 hours UTC on 2nd August is $10,552. It broke above $10,000 at the beginning of the and has continued its upward trend.

Steve Bannon also spoke positively about cryptocurrencies. He said,

“I think cryptocurrencies have a big future. I think they could be a very important part going forward particularly in this global populist revolt.”

The havoc that Libra announcement has caused in the global economy is unprecedented. Bitcoin’s more than ten years of existence did not draw as much attention to crypto as Libra has grabbed in a month.

The recent outlook of the Federal Reserve and the U.S. Senate also depicted the same. Moreover, Bitcoin, in spirit, was called an unstoppable force.

Do you think that the Bitcoin has more upside this year due to the Political tension? Please share your views with us. 

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