The tension between the USA and China is climbing again. While Trump has issued sanctions to Chinese officials, demand for safe haven is growing.
Tensions between the two global giants, the US and China are growing.
In a statement at a press conference yesterday, Trump said they would remove Hong Kong’s special status in the United States, and said China had damaged the United States for billions of years. Trump also said, “Our actions towards China will be strong and reasonable. Chinese officials who interfere with Hong Kong’s autonomy will be sanctioned. ” said. He stressed that some foreign citizens from China also suspended their entry into the country. Tensions between the two countries are expected to increase further as American presidential elections approach.
Demand for gold increased
Gold prices also rose, as the US-China tension has increased demand for safe ports. There has been a 2.5 percent increase in precious metal since Wednesday. In the same period, the increase in Bitcoin draws attention. The largest cryptocurrency with its market cap rose from $ 8800 to over $ 9600. Bitcoin is trading at $ 9550 in the minutes when the news goes live.
Speaking to CoinDesk about the US-China tension and its reflection in the cryptocurrency market, Swedish crypto trader Henrik Kugelberg said that tensions between the US and China may not be bad for Bitcoin. Kugelberg said that some Chinese investors may want to shift some of their local currencies to alternatives, which may create a driving force for cryptocurrency. “The Chinese are buying gold and Bitcoin,” said Kugelberg. said.
When the tension between the two countries climbed last year, Bitcoin had a huge increase. According to a report by digital asset management company Grayscale, cryptocurrency increased by 47 percent during the U.S.-China trade war and outperformed other value retention assets.