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Is Trump's Trade War Pumping Bitcoin?
China US Tensions Might be Fueling Bitcoin's Rocket
**The following is an opinion piece
Bitcoin has risen quite a bit during the past month or two. The cryptocurrency nearly doubled in value since January. Many different theories have risen to explain Bitcoin's recent rise in value. This includes NYC Blockchain Week, Binance being closed to deposits, and institutional adoption.
It appears that after NYC Blockchain Week ended & Binance reopening, Bitcoin remains strong at $8K. This might indicate that other reasons might have been at work.
Trump & Bitcoin
Bitcoin's price sharply climbed from $7k to $8K on May 13th 2019. This date coincides with U.S. President, Donald Trump's war of words with China. Trump reignited the flames of a trade war with a tweet on the 13th. As per the tweet:
"There is no reason for the U.S. Consumer to pay the Tariffs, which take effect on China today. This has been proven recently when only 4 points were paid by the U.S., 21 points by China because China subsidizes product to such a large degree. Also, the Tariffs can be....."
One must remember that correlation does not necessarily mean causation and many factors are at work. Another major factor might have been Facebook loosening their crypto ban. Despite this, there seems to be a direct link with the timing of Trump's tweet and market movements.
Fears of a trade war could hypothetically pull money out of the USD and Chinese Yuan and into cryptocurrencies. Should the war of words between Trump and Jinping escalate, we could see potentially see Bitcoin rise further.