The United States’ President made a huge announcement on Friday. It has caused major unrest in the global economy.
The day saw heightened tension between the two nations – the United States and China. While China escalated the trade tensions by imposing tariffs on $75 billion worth American goods. Donald Trump intensified it further as he asked American corporations to begin cutting ties with China. Trump’s tweets this morning escalated the global financial problems.
Trump made two important announcements in his tweets. First, was the escalation of the trade-war with negative criticism on Jay Powell, the Chair of the US Federal Reserve. The Dow Jones Index plunged by 623 points, about 2.3% yesterday.
DJI/USD 4-Hour Chart on Forex (TradingView)
Moreover, it goes without saying, that there is no established correlation between Bitcoin price and economic distress. However, since the beginning of this year, the “risk-off” investment environment has helped Bitcoin’s cause as an SoV (Store of Value).
A senior Chinese source: China prefers Trump to be re-elected because he will destroy US soft & hard power in the world & damage its already fraying relations with allies. The decline of the US will accelerate! So Trump is the true Manchurian Candidate: Make China Great Again!
Hence, it is not only Bitcoin proponents who have perceived this incoming doom but also no-coiners (Bitcoin and crypto haters) like Roubini and Peter Schiff. They are also seeing this as a reason for huge concern. Nevertheless, their choice of ‘safe haven’ is gold.