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Bitcoin: As U.S.-China trade war returns, is BTC the market’s last refuge?
The ongoing U.S.-China trade war has taken a turn for the worse as both nations continue to escalate their tariffs. This development has sent shockwaves across global markets, with Bitcoin (BTC) being no exception. In fact, the cryptocurrency took a hit after China retaliated with a 34% tariff on all U.S. imports.
While many would expect the market’s response to be chaotic and unpredictable, some analysts have offered a more optimistic outlook. According to Eric Weiss, the escalation of the trade war could ultimately benefit Bitcoin. He believes that as the stock market bleeds due to this ongoing conflict, investors will begin to turn their attention towards alternative investment options.
Weiss emphasized that Bitcoin is uniquely positioned to withstand any fallout due to its lack of earnings risk and geopolitical uncertainty. In his words, “No earnings risk. No geopolitics. Just math.” This sentiment has led some experts to believe that the cryptocurrency may not only hold up but also outperform in this scenario.
Furthermore, despite the dollar’s sharp decline against the yuan following China’s tariff announcement, Bitcoin managed to rebound slightly above $82,000. This resilience could be attributed to its intrinsic value and the fact that it is not tied to any particular nation or economy.
With recession fears now on the rise, particularly in prediction markets such as Kalshi (61%) and Polymarket (57%), some analysts are cautioning against premature optimism. They argue that while Bitcoin may initially benefit from this uncertainty, a deeper slump could follow if Fed Chair Jerome Powell were to dismiss any possibility of rate cuts.
The current market turmoil has led many investors to reassess their portfolios, with some seeking shelter in the perceived safety net provided by crypto assets like Bitcoin. However, this surge in demand might not necessarily translate into long-term viability for cryptocurrencies as a whole.
Source: https://ambcrypto.com/bitcoin-as-u-s-china-trade-war-returns-is-btc-the-markets-last-refuge
