Shocking! ‘Bitcoin Wins the Trade War’ as Chinese Investors Pile In
To the government’s chagrin, Chinese demand seems to be pumping the bitcoin price as the yuan weakens on account of the U.S.-China trade war. | Source: Shutterstock
By CCN: Bitcoin is on a tear as the price of the flagship cryptocurrency has gone supersonic in 2019. It is widely believed that bitcoin’s remarkable rally is a result of booming institutional interest in the cryptocurrency, as investors are looking for alternative asset classes to park their funds at a time when the stock market is in turmoil and the global economy is on edge.
But it looks like institutional buying isn’t the only catalyst driving bitcoin’s price. The Chinese are reportedly piling into bitcoin, believing it to be a safe investment at a time when the yuan is taking a hit thanks to the U.S.-China trade war.
In a period where:
—political tensions escalate between US and China,
—global equity markets fall sharply
—VIX largest spike in many months
—global yield curves flatten/invert#bitcoin has RISEN and $6,000
Crypto showing its value as an uncorrelated asset.
— Thomas Lee (@fundstrat) May 9, 2019
China Suddenly Loves Bitcoin
The Chinese government has a hostile approach toward bitcoin, delivering blow after blow to the cryptocurrency industry in general. From shuttering exchanges to outlawing ICOs and considering a ban on mining activities, the Chinese government has made it clear that it doesn’t love crypto.
But the Chinese people are counting on bitcoin a time when the yuan is crumbling under the pressure of the trade war.