Bitcoin edges higher on trade war worry
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.”
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.