The relationship between Bitcoin and a trade war is complex but interesting. Here’s a quick breakdown of how trade tensions can impact Bitcoin:
1. Safe-Haven Asset Narrative
During times of geopolitical or economic uncertainty—like a trade war—investors often look for alternative stores of value. Traditionally, this has meant gold. But increasingly, Bitcoin is seen as a “digital gold.” So when trade wars cause stock markets to fall or currencies to become unstable, some investors turn to Bitcoin.
2. Currency Devaluation
Trade wars can lead to currency devaluation (e.g., China weakening the yuan to offset tariffs). If people believe their national currency is losing value, they might move some of their assets into Bitcoin to preserve purchasing power.
3. Capital Flight
In countries affected by a trade war, especially those with capital controls (like China), Bitcoin can be used to move money across borders. This increases demand and can drive up the price.
4. Market Speculation
The uncertainty around trade policies often causes volatility in traditional markets. Traders might shift to crypto for opportunities—or just to hedge their risks.
5. Regulatory Impacts
Governments engaged in trade disputes may also crack down on crypto or, conversely, loosen regulations to attract investment. This can influence Bitcoin’s price and adoption. $BTC
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$BTC is in 85k support zone for now ! But if the price breaks this zone $BTC will land on 72k lets see ! In my pov i think $BTC will dump to 80k then pump from the support