Analysts suggest that the tension between the US and China is crucial to the growth of the bitcoin price.
Bitcoin takes advantage of tension between the US and China.
Since controversy between the United States and China is not going to be solved any time soon, the US economy is gradually yielding to the consequences of the conflict.
Given the well-known fact that the trade war gives Bitcoin an advantage, experts also believe that China may consider Bitcoin as a benefit to avoid the sharp impact of Washington’s sanctions.
In addition, experts took a critical look at the prospect of digital yuan, noting that this could push the White house to develop its digital dollar.
If everything eventually goes this way, it will lead to an increase in the popularity of digital assets, and to an increase in their acceptance. Some experts note that the only thing that can benefit the digital asset market is the decline of the American economy, not the development of the digital dollar.
If their comments are carefully considered, then the tension between these powers is just a sign that the US economy is gradually declining. Bitcoin has recently started to rise in price after trading sideways a few months ago.
Currently, the price of BTC is around $ 11,840, and this came some time after trump announced a ban on TikTok among other things, including the closure of their respective consulates.
China is suffering from tension.
Taking a critical look at things, it can be concluded that the increasing tension between the US and China can cause consequences that go far beyond the rise in the price of bitcoin.
Another critical effect may be the relocation of the majority of miners from China, which, according to available data, can boast 65% of the hash capacity of the bit.
Voicing its view on the ongoing tensions, BitOoda, the digital Finance division, said that weak relations between both countries had led to sanctions that sharply reduced China’s market shares. The growth of monetary nationalism may be another negative effect of tension. This can be good or bad for Bitcoin, depending on which side you are on.
A few words about monetary nationalism
The doctrine of monetary nationalism States that a country’s share of the world’s money supply should not be determined by the same principles and the same mechanism as those that determine the relative amounts of money in its various regions or places.
This doctrine is practiced by China and other monetary nationalism regimes, when the currency’s sphere of circulation coincides with the country’s borders, and management belongs to the Central Bank that issues it.