Bitcoin edges higher on trade war worry

July 26, 2018
Chris Wheal

Bitcoin continued its climb this morning, up +0.80%, to $8,264 as worry about a Trump trade war intensified. Ethereum is also up strongly, climbing +2.2% to $481. 

Clem Chambers, CEO of ADVFN told Forbes magazine that if a trade war goes into meltdown “then bitcoin will ‘moon’ because huge amounts of Chinese currency will be swapped for BTC as the yuan-denominated super-rich move to be hedged from the wealth privations of devaluation”.

He added: ”Bitcoin, not gold, is and will be the asset they will run to first.” Chambers told the Express that the Chinese currency is being devalued to fight Trump’s tariffs. 

“To get around Chinese exchange controls, rich and influential Chinese are buying Bitcoin to get out of their depreciating currency, which looks likely to keep falling in value.”

Tokyo interest is also thought to be responsible for new energy behind bitcoin’s value climb

Japanese support

However the UK Express reported that the new bitcoin climb has benefited from Japanese support. “Take a look at bitcoin volumes in Japanese Yen and Korean Won at the time of the surge,” Matthew Greenspan of eToro told the paper.

“In contrast, USD volumes had only a small spike and USDT (tether) remained constant through the movement.”

The average transaction Bitcoin speed is now thought to be above 2.5 transactions a second, indicating increased use of the currency as a medium of exchange. Bitcoin has risen, in total, more than 40% in the last three weeks.

Post written by Chris Wheal
Chris Wheal is editor of OpenLedger's news and features service. An award-wining business journalists himself, he runs a team of freelance journalists from across the UK and north America.

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