When the trade war between China and the US breaks out, global financial markets, including the cryptocurrency market such as Bitcoin, are often affected. Here are some potential impacts on Bitcoin during such periods:

1. Demand for alternative assets:

When geopolitical or trade tensions rise, investors tend to seek 'safe havens' to protect themselves from fluctuations in traditional markets. Bitcoin is sometimes viewed as 'digital gold,' increasing its demand during times of uncertainty.

2. Volatility in traditional markets:

Trade wars lead to disruptions in stock and currency markets, which may prompt some to convert their money into cryptocurrencies, raising the price of Bitcoin.

3. Impact on the value of the dollar and yuan:

If the US dollar or Chinese yuan is negatively affected by sanctions or tariffs, people may turn to cryptocurrencies as an alternative to volatile fiat currencies.

4. Investor behavior in Asia:

With China being one of the largest countries interested in technology and cryptocurrencies, any economic tension may drive Chinese investors to use Bitcoin to transfer their money out of government restrictions.

Summary:

The trade war between China and the US is often a catalyst for a short-term rise in the price of Bitcoin due to increased demand for digital assets as a means.