5 reasons why a trade war can raise Bitcoin

The context: the customs tariffs announced by the American president Donald Trump in early April We launched a real trade war with several countries, including China, with strong repercussions on the traditional financial markets and crypto. This more optimistic perspective emerges while the Bitcoin course struggles to regain momentum, with generalized losses both in traditional markets and in the markets of cryptocurrencies. A trade war, the great opportunity of Bitcoin? Five key factors that lean towards an increase in a detailed analysis published on the social media platform X (ex Twitter), Ben Sigman, analyst and CEO of Bitcoin Libre, presented five factors according to which a conflict fueled by customs prices could trigger an increase in the value of the bitcoin. His first point focused on the potential trajectory of the US dollar. According to him, a trade war would strengthen the dollar. However, a subsequent collapse would ultimately reverse this trend. “The prices increase the dollar. The emerging markets crack in $ 12,000 billion in USD debt. Confidence in fiduciary currencies is crumbling. Capital rushes towards the security of a fixed offer, “he said. Sigman suggested that in this case, the capital could then seek refuge in fixed offer assets, such as Bitcoin, positioning the small orange part as a protection against financial instability. Then he underlined the potential of Bitcoin as a cover against inflation. Indeed, import taxes often disrupt global supply chains, increasing the cost of goods and slowing down economic growth. In response, central banks, including the federal reserve, could reduce interest rates, thus devalting national currencies. Sigman argued that the inherent rarity of Bitcoin and its world accessibility make it convincing coverage in such a case. In the third point, Sigman highlighted the accelerated trend in de-dollarization. He explained that nations like China, which now performs 56 % of its business bills in Yuan, are increasingly looking for alternatives to the US dollar. According to him, the BRICS coalition (Brazil, Russia, India, China and South Africa) will also develop alternative financial systems. However, this change is not without risks because it could lead to a capital leak. “Bitcoin thrives in a fragmented world as a neutral and global option,” he said. Fourth, Sigman predicted a wave of panic on the markets. He believes that a single tariff cycle could cause a loss of $ 5,000 billion in market value, flatten bond yields and make traditional shelter as attractive, such as gold. In such an environment, the volatility of Bitcoin could attract investors in search of high -risk and high reward opportunities, until potentially cause influx of substantial capital. Finally, Sigman argued that a trade war could expose systemic vulnerabilities in global institutions. The prices could thus precipitate defects in payment of the debt and erode confidence in systems based on fiduciary currencies, encouraging investors to turn to Bitcoin. “Bitcoin was designed for this: without authorization, without borders, without bank,” he concluded. However, all analysts do not share Sigman’s optimism. Another renowned commentator in the sector, Fred Krueger, recently presented nine forecasts concerning the potential taxation of prices exceeding 100 % on China in the coming year. He notably predicted that this measure could lead to massive drops of Bitcoin and other cryptocurrencies like Solana (soil). “Everything collapses at the same time. At one point, it ends. When ? Trump is unfortunately crazy and poorly advised, ”wrote Krueger. When asked if the Bitcoin course was going to fall to zero, he replied in the tone of the joke: “I will take him entirely at $ 1. While trade tensions between the United States and China are intensifying, fueled by new taxes on Chinese products and more general geopolitical friction, the role of Bitcoin in the global financial sector is monitored very closely. However, the performance of the greatest long -term cryptocurrency remains to be seen, however. Bitcoin course performance. Source: Beincrypto for the moment, the market seems to be pretty lower. Beincrypto data notably showed that during the last day, the BTC dropped by 3.1 %. At the time of writing this article, he was negotiated at $ 76,914. Morality of history: When Bitcoin flourishes in chaos, he fulfills his role. Notice of non-responsibility Non-responsibility notice: In accordance with the guidelines of The Trust Project, BEINCRYPTO undertakes to provide impartial and transparent information. This article aims to provide exact and relevant information. However, we invite readers to verify the facts of their own and consult a professional before making a decision on the basis of this content.

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