Bitcoin (BTC) and other cryptocurrencies were affected a few hours ago when the U.S. President Donald J. Trump posted a tweet in which he said that they were increasing tariffs to China from 10% to 25%. After this information, emerging market currencies dropped against the US dollar and the stock market fell more than 1.75%.
Could US – China Relations Affect the Crypto Market?
Bitcoin and other digital assets fell after Donald Trump published a tweet informing about an increase in tariffs for Chinese goods entering the United States. At the same time, the stock market didn’t behave positively. The S&P 500 operated more than 1.75% down and other makers in Asia were falling even further.
On Monday, Asian markets fell and other markets followed after it. Bitcoin and digital assets registered losses of around 3% during the same period of time. According to LightCrpto, Sunday evening’s sell-off occurred simultaneously after the Hang Seng’s 3.4 percent drop.
At the same time, Travis Kling of Ikigai Asset Management drew several similarities between the chart of the SSE and Binance Coin (BNB). He said that cryptocurrencies are a risk asset since global capital flows matter.
In general, cryptocurrencies have been considered an uncorrelated asset. During a CNBC interview back in December, Anthony Pompliano, co-founder of Morgan Creek Digital, explained that the correlation between Bitcoin and the S&P 500 (SPX) was practically zero. Moreover, other experts such as Su Zhu, from Three Arrows Capital, said that the correlation between Bitcoin and the SPX is also still near-zero.
Additionally, JP Morgan’s cross-asset management arm, John Normand, explained that gold remains a better safe haven against downturns than Bitcoin, which is much more volatile than the precious metal and is considered to be a riskier asset.
According to Jacob Canfield, a cryptocurrency analyst and trader believes that Bitcoin is currently in a turning point. According to his technical analysis, the direction of Bitcoin’s price will be determined during the next few hours. He said that Bitcoin has been following a trendline during the last few weeks and the digital asset could change the direction of the trend.
At the moment, each BTC can be purchased for $5,789 and it has a market capitalization of over $101 billion.
Bitcoin’s price is $5,886.65 BTC/USD exchange rate today. The real-time BTC market cap of $104.12 Billion currently ranks #1 with a chart dominance at 56.14%, daily trading volume of $5.39 Billion and live coin value change of BTC 2.87% in the last 24 hours.