The first cryptocurrency has seen an upward movement in the past several days. The price of the token shot up to $11,800 on August 5 and eventually hit over $12,000 on August 6. Bitcoin has been witnessing a downturn since April 2017. However, it recorded a local high of $13,800 on June 2019. Despite the increasing fears of a global recession and the worsening China-US trade war, Bitcoin isn’t showing any signs of weariness today. However, there may be drivers for the recent 10% gain in Bitcoin.
Bitcoin Latest Update – Bitcoin Price Prediction – Bitcoin Prediction 2019 – Bitcoin News Today- Bitcoin Latest 10% Gain
Some factors may be responsible for Bitcoin’s upward movement today. In addition to Tether’s expansion on multiple blockchains, sociopolitical tensions around the world are likely to have contributed to the Bitcoin’s bull rally. Tether supports Bitcoin as its migration to blockchains such as EOS, Liquid, and Tron is creating worries in the crypto sphere.
Bitcoin (BTC) Price Today – BTC / USD
Over the weekend, two mass shootings occurred in the US. 20 people were reported dead in the first attack that took place in El Paso, Texas. The other shooting in Dayton, Ohio left 9 people dead. Both incidents have fuelled racism in the country. However, they may have also facilitated Bitcoin surge.
The current political crisis in Hong Kong is driving investments oversea. Consequently, the country’s stock market has recorded its worst performance for several months. Violent mass demonstrations in the city have led to the cancellation of flights to and fro the city.
Bitcoin Market Update- The Trade War Between China and the US
The US-China face-off has created tension that affects the economy. The relationship between the presidents of both countries is worsening. Recently, China has taken measures to buffer the new US tariffs. The US President, Donald Trump, has introduced a new 10% import tariff on Chinese goods worth $300 million. The new tariff which was announced last week will take effect from September 1.
In response to the U.S action, China has devalued the Yuan. The devaluation of almost 1.5% by the People’s Bank of China (PBOC) will make the Chinese currency cheaper. Consequently, the offshore (CNH) and onshore (CNY) markets are trading against the American currency above the psychological level of 7.00. This is the lowest level for the CNY since April 2008. The central bank stated that the devaluation is a reaction to the upcoming tariffs on Chinese goods.
Yuan is not a free-floating currency like the euro or US dollar. The PBOC sets its price daily. With a cheaper Yuan, the country can counteract some negative effects of the imposed tariffs. It can also boost exports from China. The devalued Yuan and increased tension resulting from the US-China trade war is putting pressure on the stock market.
However, some economists are anticipating no trade deal between the US and China by the end of this year. The global economy is likely to meet its doom if their expectations become a reality.
Bitcoin Price Prediction – Bitcoin Wins Against The USD
Considering the sociopolitical tensions and the trade war, Bitcoin appears to be a safe haven currency. During the Asian trading session on Monday, August 5, the crypto asset gained 9.92% to $11,767. Besides, dovish sentiments from major central banks such as the European Central Bank and the US Federal Reserve indicated a bullish trend for the cryptocurrency.