Bitcoin has been on a tear, and some of that may be due to our friends in the East.
The U.S. and China have been in a much publicized trade war.
With the U.S. saying they are tired of China enjoying an unfair trade agreement between the two partners.
And China saying, well we'd like to keep our current agreement so we can keep our rapidly growing economy humming along.
The U.S. has announced several tariffs on Chinese goods which is likely going to hurt China.
Their response?
They are slapping tariffs on U.S. goods as well.
However, there are also rumors that they are piling into bitcoin as a way to avoid U.S. sanctions/tariffs.
It is hard to say whether there is much truth to this as the Chinese government has come down pretty hard on bitcoin, cryptocurrency, and bitcoin miners as of late.
Making it all the more difficult to participate in the cryptocurrency markets for Chinese based investors.
However, looking at data from LocalBitcoins we can see that China has seen a rise in trading activity between their local fiat currency and bitcoin:
(Source: https://www.ccn.com/meteoric-bitcoin-rally-wont-rescue-nvidias-flailing-stock/)
In March, China was the 5th largest in terms of volume by country on the peer to peer exchange.
And a closer look reveals a spike in the last few weeks as well.
Tough to say for sure...
Whether China is driving this recent price surge is up for debate, but it isn't out the realm of possibilities that the geopolitical uncertainty is causing a flight to bitcoin, and possibly by the Chinese as well.
Stay informed my friends.
-Doc
Seems like a stretch to me because we would also be seeing prices of gold and silver rise as well but that hasn’t really happened although that market is much larger.
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Perhaps. I think most likely any money coming in from China is secondary to the the main drivers of this price rally, though it's tough to say with absolute certainty either way.
This is well possible. There are a lot talk this and doing other.
Yep. There are rumors that tether and bitfinex are a big part of the recent pump.
They need BTC to pay for tariffs 😂
Haha, sure!
Most likely is the case, they love their bitcoin
The government is not helping them out any...
It is hard to know but maybe some true behind this trade war. :)
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I think there might be some money going into bitcoin, but likely not the main driver.
I think yes. The conflict btw two super powers makes investors harbor at safe ports.
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I could see the appeal...
The trade war uncertainty is making BTC volatility look pretty good (uptrend) when compared with stocks and most of the commodities (downtrend).
Yep, looking like a safe haven.
Exactly!!
There's a part of me that doesn't much care why the price is spiking, as long as it continues to spike. LOL! :)
That said, it looks like your predicted short term pull back is here... 7,500 and falling as I type.
Yep, not surprised. The question is how low do we go? I bought some here at $7k, but just a tiny bit. I think we will see $6,500 and probably $6k. Not sure we see much lower than that though...
If there is any major factor it sounds like the success of the Lightning Network would be it; to the point of having Amazon excepting payments through it.
I don't think the recent rally has much do with that, but that is a nice fundamental development for sure.
Thanks.