- Bitcoin could surge amid escalating U.S-China trade tensions.
- Analysts predict BTC may break out as yuan faces pressure.
- Historical trends suggest Bitcoin’s potential surge similar to 2015.
Bitcoin could see explosive increase in value amid the rising trade tensions between the U.S and China. Analysts predict that BTC will duplicate its 2015 movement pattern, when the Chinese Yuan’s devaluation triggered shifts in financial markets. China’s potential retaliation to President Trump’s 50% tariff positions BTC as an alternative attractive investment option amid the market uncertainty.
Bitcoin Breakout Imminent, CNY Faces Devaluation
A Bitcoin breakout could happen as the USD/CNY exchange rate approaches major resistance areas. Investors could turn to cryptocurrencies as alternative investment assets because of the weakening yuan and geopolitical tensions. Market analysts observe that BTC has historically thrived during geopolitical tensions and expect similar patterns to occur.
President Trump seeks to impose an additional 50% tariff on Chinese imports as the trade war between America and China intensifies. Beijing has promised to retaliate against the new U.S. tariff , calling these actions blackmail by the American administration. If China continues to increase its tariffs on U.S. products this could destabilize the global economy and make BTC an attractive safe-haven for investors looking for stability during times of economic turbulence.
Bitcoin attracts investors because of its decentralized status away from governmental control. Moreover, BTC provides a hedge against inflation amid the current economic uncertainty and inflationary concerns. Analysts believe that the current price of Bitcoin could be temporarily suppressed and this could trigger an imminent surge in its price.
Past BTC Performance In Market Tension Sparks Enthusiasm
Matrixport, a blockchain analytics firm based in Singapore, believes the performance of Bitcoin during past geopolitical events could duplicate in the current trade tensions. In 2015, BTC price initially dropped after the Chinese yuan was devalued but ended the year with major gains. Analysts believe that the current market conditions match those in 2015 and BTC could experience a major price increase.
Bitcoin is poised for long-term growth despite the temporary market uncertainties caused by increase in U.S. Treasury yields. Historically, BTC has surged during market uncertainty which attracts the interest of both individual and institutional investors. Moreover, BTC could serve as a safe haven asset because of the persistent geopolitical risks and the weakening yuan.
