Cryptocurrency

Bitcoin price shoots up after Trump tweets about China tariffs

Bitcoin price shoots up after Trump tweets about China tariffs

The price of bitcoin has been unusually erratic in recent days

(
Getty Images
)

Cryptocurrency increasingly seen as safe investment as trade war escalates

The price of bitcoin has shot up following a series of tweets by Donald Trump which further intensified trade tensions between the US and China.

Cryptocurrency analysts said it was the first time bitcoin’s price had reacted in “real-time” to a breaking news story about the trade war.

The price spike added to growing evidence that investors are treating bitcoin as a safe haven asset during times of economic turmoil and geopolitical uncertainty.

Download the new Indpendent Premium app

Sharing the full story, not just the headlines

Download now

“Escalating tensions between the two world’s largest economies will see investors pile in to decentralised, non-sovereign, secure currencies, such as bitcoin, to protect them from the turmoil taking place in traditional markets,” Nigel Green, chief executive of financial consultancy firm deVere Group, told .

The ongoing trade dispute, he added, will likely continue to drive the price of bitcoin and other cryptocurrencies higher.

Bitcoin price shoots up after Trump tweets about China tariffs

On Friday, China announced a new round of tariffs on $75bn (£61bn) worth of US goods would come into force on 1 September.

In response, Mr Trump tweeted his condemnation of the “politically motivated” tariffs and laid out his plan for retaliatory import taxes on Chinese goods.

“Sadly, past administrations have allowed China to get so far ahead of fair and balanced trade that it has become a great burden to the American taxpayer,” Mr Trump tweeted.

“I can no longer allow this to happen! In the spirit of achieving fair trade, we must balance this very unfair trading relationship.”

Bitcoin price shoots up after Trump tweets about China tariffs

Bitcoin’s price shot up after Trump’s tweets about Chinese tariffs (CoinMarketCap)

He added that from 1 September tariffs on $300bn (£246bn) worth of imports from China would be increased by 5 per cent.

Immediately after Mr Trump’s tweets, the price of bitcoin experienced a sudden surge of $200 (£164) to take its value to $10,400 (£8,151).

“Today was the first time bitcoin reacted sharply in real-time to a Trade War breaking headline,” noted market analyst and cryptocurrency investor Alex Kruger.

“As far as I can recall, this in fact is the first time bitcoin reacts in real-time to any event outside of crypto.”

We’ve teamed up with cryptocurrency trading platform eToro. Click here to get the latest Bitcoin rates and start trading. Cryptocurrencies are a highly volatile unregulated investment product. No EU investor protection. 75% of retail investor accounts lose money when trading CFDs.

Show More

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Close