US President Donald Trump has made a U-turn by imposing additional tariffs on $300 bln worth of Chinese goods.
The escalation of the ongoing trade between the two superpowers instantly sent global markets in the meltdown mode while Bitcoin ended up on the winning side.
A safe haven for investors
Back in May, Barry Silbert of Digital Currency Group told Fortune back that Bitcoin price could serve as a hedge against the US-China trade war.
It’s certainly interesting that the [Bitcoin] price started its acceleration, moving up and to the right, when the trade discussions broke down,’ Silbert said.
Notably, Brexit and Grexit also affected the number one currency in a positive way.
Investing.com’s Jesse Cohen also claimed that Asian investors saw Bitcoin as a hedge asset against global political turmoil.
This time around, right after the announcement of new tariffs, Brian Kelly noticed that the offshore (CNH) renminbi market was moving in tandem with Bitcoin.
Numbers speak for themselves
After Trump slapped China with a 25 percent tariff on $200 billion of its imported goods on May 5, the price of Bitcoin went up by a whopping 40 percent in the following ten days.
Conversely, Bitcoin seemed to cool off when the US and China moved a tad closer to reaching a trade deal.
Even though Trump himself is ‘not a fan’ of Bitcoin, he might inadvertently cause another massive price rally by ramping up pressure on China.