In more than a decade, Chinese Yuan struck the lowest price mark as the tensions between the U.S. and China soars. In the meanwhile, Bitcoin surged up to more than 20% with an increase of more than $500 in price.
As we know, Mr. President Donald J. Trump has imposed sanctions and high taxes on Chinese brands which have taken the trade war into a new phase. It is strongly believed that the U.S-China trade war has a strong influence on Bitcoin’s price and crypto market.
In the recent price rise of Bitcoin and fall in the Yuan, crypto analysists are saying that Bitcoin has been more stable than ever — and it is becoming a safe haven for the traders. Although still, no one can surely bet that what’s going to happen next in the crypto market.
The volatility of the crypto market is still a question mark. However, in all these scenarios, crypto whales cannot be unseen because a large amount of Bitcoin movement leads to changes in the price of BTC and market fluctuation.
Is China planning to digitalize Yuan?
Many analysts think that the U.S. is trying to manipulate Yuan and with Libra yet to launch in the market, Yuan has some severe threat. In these circumstances, China is planning to legalize cryptocurrency. Though China hasn’t been a massive fan of digital currency, yet it is planning to create its own digital asset to get out of U.S pressure.
The central bank has shown serious interest in the development of the state-backed virtual currency. The primary focus is to make quick implementations before it’s too late for China. Already several blockchain projects are under development, and specifically, digital currency programs have been faster than ever.
As Facebook’s Libra is about to step-in, China’s priority remains to compete with American stocks and maintain the worth of Yuan. With Libra on the verge to rise, U.S-China trade war seems to explode in the coming days.
These circumstances could highly be favorable for Bitcoin and crypto market. Although the cryptocurrency market is still new and volatile, investors would instead opt Bitcoin and crypto market to get rid of trade war tensions.
With the blockchain industry evolving every single day, we see new firms adopting Bitcoin and investors moving to the crypto market. What we can assume from all of this is that in the coming time if things get more complicated between the U.S. and China, Bitcoin could break past the previous best. Whereas, Chinese Yuan can bear serious consequences if the American policy remains the same.
As technology advances, the world enters a new phase of economic and trade warfare. If the US dollar gets somehow connected with the digital currency, this will increase the dominance of the U.S dollar and all the other fiat currencies would coexist under the dollar-centric digital currencies.
In result, this would make the US dollar more powerful, and America will be bossing everything, and that’s what China would not want to happen in any case. The way things are shaping this could probably end up in a severe financial, economic, and international political outcome.
Among all this happening, Bitcoin seems to be safe-haven for investors. At the moment, how things are shaping up, there could be a possible wave of investors entering the crypto market. Need to keep close eyes on the other side, what’s going to happen between the U.S. and China. Would China come up with its own digital currency?
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.