The United States’ President made a huge announcement on Friday. It has caused major unrest in the global economy.
The day saw heightened tension between the two nations – the United States and China. While China escalated the trade tensions by imposing tariffs on $75 billion worth American goods. Donald Trump intensified it further as he asked American corporations to begin cutting ties with China. Trump’s tweets this morning escalated the global financial problems.
Trump made two important announcements in his tweets. First, was the escalation of the trade-war with negative criticism on Jay Powell, the Chair of the US Federal Reserve. The Dow Jones Index plunged by 623 points, about 2.3% yesterday.
Moreover, it goes without saying, that there is no established correlation between Bitcoin price and economic distress. However, since the beginning of this year, the “risk-off” investment environment has helped Bitcoin’s cause as an SoV (Store of Value).
American Economists like Nouriel Roubini criticised Trumps’ view enormously. He tweeted,
A senior Chinese source: China prefers Trump to be re-elected because he will destroy US soft & hard power in the world & damage its already fraying relations with allies. The decline of the US will accelerate! So Trump is the true Manchurian Candidate: Make China Great Again!
Hence, it is not only Bitcoin proponents who have perceived this incoming doom but also no-coiners (Bitcoin and crypto haters) like Roubini and Peter Schiff. They are also seeing this as a reason for huge concern. Nevertheless, their choice of ‘safe haven’ is gold.
FedEx, Amazon and Post Office “ordered” on Fentanyl
The second more specific area of concern for Trump was ‘fentanyl’ – an opioid (narcotics). He tweeted,
… Also, I am ordering all carriers, including Fed Ex, Amazon, UPS and the Post Office, to SEARCH FOR & REFUSE, all deliveries of Fentanyl from China (or anywhere else!). Fentanyl kills 100,000 Americans a year.
This comes two days after the Government had released an advisory note which included the role of cryptocurrencies played in the purchase of these items on the dark web.
The treasury found that virtual currencies were one of the most popular means of payment for these activities. The Government spokesperson told the media,
“Their customers made purchases with virtual currency, which the couple then sent to virtual currency exchangers to convert the funds into US fiat currency.”
Nevertheless, as the Bitcoin addresses of the offenders are being tracked and banned, the first part of his announcement was what interested the crypto-community.
“Risk-Off, Bitcoin Up” – Max Keizer
As for Bitcoin proponents in the US, they did not welcome the trade war. However, saw a great opportunity for the growth of the Bitcoin.
Mike Novogratz, a Billionaire Bitcoin investor and perma-bull, noted,
“Hereby ordered to start taking your business out of China”. Really? Did we bestow dictator status on @$. It’s gonna get messyLike I tweeted earlier, the slide has started. Trump is nervous and panicky and impulsive. Take the field vs Trump. And buy
Anthony Pompliano, the founder of Morgan Creek Digital and Bitcoin enthusiast noted: “Bitcoin allows you to opt-out of this chaos.”
Bitcoin [BTC] gained about 2.8% on a daily scale. The price which was looking significantly bearish the day before is starting to look positive now. Moreover, it seemed to have new vigour to its low trading volume as the economic distress alarms are going off massively.
Altcoins also gained slightly on a daily scale, as the crypto-market dominance of Bitcoin gained about 0.2%.
How do you think that the trade war and economic distress would favor Bitcoin’s cause? Please share your views with us.