#USChinaTradeTalks

USA vs China: How Geopolitics Affects the Crypto Market

Relations between the USA and China have a significant impact on the global economy — and the crypto market is no exception. When tensions rise between the states (trade wars, sanctions, restrictions), investors seek alternative assets, and often that asset becomes Bitcoin — as 'digital gold'.

🔻 For example, news of the mining ban in China in 2021 caused a market crash.

📈 A weakening dollar or instability in China may drive demand for BTC as a safe-haven asset.

Crypto responds to:

• regulatory restrictions

• news about CBDCs (central bank digital currencies)

• statements from officials