Bitcoin Continues to Face Tough Hurdle on Trade War Concerns
One of the biggest events in the news cycle this year was the return of Bitcoin and the rally that went on in the first half of the year was quite remarkable. It helped in a surge of sorts in the wider crypto space as well, but many believed that the Bitcoin rally was going to continue.
However, in July, the momentum was lost, and since then, the world’s biggest cryptocurrency has struggled to reach its earlier heights. That being said, there had been hope that the rising trade war tensions between the United States and China were going to have a positive effect on Bitcoin.
At the time of a trade war, the markets suffer from extreme uncertainties and more often than not, investors look for other assets through which they can hedge their bets somewhat. Hence, many analysts believed that Bitcoin could emerge as the hedge against global uncertainties for many investors.
In August, it seemed that something like that was happening as BTC climbed after United States President Donald Trump announced the raise in tariffs on Chinese goods. It rose further when China devalued the Yuan and further escalated the tensions between the two nations.
Just when it seemed that Bitcoin was going to continue to climb due to the rising tensions, it gave up almost all of its gains and plunged to $9325.29 by the end of August. It proved to be a bit of a disappointment for many traders who had believed that the cryptocurrency had emerged as a legitimate hedge against the economic risks.
However, it seems that it is gold that has emerged as the world’s favorite hedge at this point and it has continued to rise at a remarkable pace during this period of extreme uncertainty in the markets. It remains to be seen how Bitcoin fares in the last quarter of the year.
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