US and China still putting pressure on conventional markets because of their trade tension, analysts are starting to recognize the significant or benefits it could have on BTC. Most of the analysts cited that cryptocurrency price may reach significant highs.
The tension between the US and China is causing somewhat a state of great disturbance amid traditional markets. The correlation between the China’s yuan and US Dollar is getting more and more alarming. At the time, one yuan is worth approximately 0.14 USD which is alarming, to say the least. A low yuan can cause investors to run-off China which would lead to large flood of capital. Moreover, Chinese companies which have USD-denominated debt are going to find themselves in a position where their loans have become more expensive.
US companies are in pain because of the trade war. The S&P 500 is down about 3 percent since the beginning of the month.
As stated by Christopher Vecchio, a senior currency strategist, “it would be challenging for Bitcoin to return to $20,000 in the near term. However, the analyst also said that this could happen if the yuan continues to weaken.”
In an environment where the global financial system looks like it is potentially at risk because of the world’s two largest economies going at odds, people may be looking for alternative avenues to find ways to circumvent the capital controls being put in place to move their money around without the Chinese or U.S. government taking stock of it. – Said Vecchio.