Bitcoin has risen by about $1,000 in the past 24 hours from circa $10,800 to a current $11,800 with it crossing $12,000 on some exchanges.
That’s on increased unfiltered trading volumes of $22 billion that have given the decentralized currency a 10% gain this Monday.
Bitcoin has been up and up since 29th of July coinciding with Donald Trump slapping 10% tariffs on $300 billion worth of Chinese goods.
Somewhat predictably China’s response has been to tariff US goods at 25% and for good measure they have allowed Chinese money to cross that 7 CNY to the dollar for the first time in a decade.
Trump’s response may well be to shout at FED as all this starts getting a bit messy with a somewhat red Monday for stocks. We quote associated press:
“London’s FTSE 100 fell 2.2% to 7,247 and Frankfurt’s DAX lost 1.8% to 11,661. France’s CAC-40 declined 2.1% to 5,243.
Tokyo’s Nikkei 225 fell to 20,720.29 and Hong Kong’s Hang Seng declined 2.9% to 26,151.32. Seoul’s Kospi was 2.6% lower at 1,946.98.
The Shanghai Composite Index dropped 1.6% to 2,821.50 and Sydney’s S&P-ASX 200 retreated 1.9% to 6,640.30. India’s Sensex lost 1.5% to 36,576.42.”
Bitcoin, Gold Rise on Yuan Fall
Misery in stock markets is met with celebration in gold corners. Up and up in what for them must feel like boom times:
Bitcoin too might be getting a bit frothy as it sides with gold for now in probably a very direct response to Yuan crossing 7 CNY.
The cryptocurrency does not quite correlate with any asset, but sometime it does temporarily react to such macro-economic events, in part because bitcoin was hugely popular in China before they closed centralized crypto exchanges.
Eventually the Chinese people managed to get around those restrictions through USDT which was worth 7 CNY a few months before USD was.
That has probably made buying bitcoin a lot easier than buying gold in China, so creating upwards pressure for the digital gold.
All eyes are now on Trump. Will he blink as stocks go red, or will he have an angry rant at everyone but his failure to strike a deal.
We all probably know the answer, with FED already showing deference.
Meaning what we may well see is a race to devaluation in what history may well judge as the height of stupidity.
Bitcoin unaffected though because one bitcoin is one bitcoin.