As US president Donald Trump shocks the world with his surprise steel and aluminum tariffs targeted at Canadian, Mexican and EU markets, Bitcoin markets could be the beneficiary, according to Forbes.
The response from Canada, the UK, France, and Mexico has been one of surprise and total indignation, pointing to the possibility of a trade crisis between the nations involved. These apparently punitive and protectionist measures could provide the much-awaited positive swing for Bitcoin, as it could become an ideal hedge opportunity as a result, providing that President Trump‘s latest measures aren’t rescinded due to a global response against the US.
Traders are now bracing themselves against the possibility of market volatility which will work very much in Bitcoin’s favor, as investors look for fundamentals to support the price of Bitcoin and positive indicators and motivators for change.
The recent Consensus 2018 event in New York was seen by some as the kind of shot in the arm needed to reinject enthusiasm in the sluggish Bitcoin market, but it proved to lack any real energy as a contributing driver to market despite offering headlines about Lamborghinis to news sources.
The last two months have seen numerous positive comments from central banks regarding some kind of CBDC. On both sides of the English Channel, politicians have waxed lyrical about cryptocurrency with even Canadian Bank of England Governor Mark Carney manufacturing a dramatic turnaround after his earlier view that Bitcoin had “failed”.
China with a cryptocurrency ban in place has now begun to take blockchain technology seriously, led by recent comments by Chinese president Xi Jinping, who now promotes the benefits of the new technology. Chinese investors welcome this, and reports indicate that it’s a question of time before the Bank of China follows suit. If the People’s Bank of China takes that route, it may impact on the way that Bitcoin and other currencies are regarded by the government, blockchain being the underlying technology behind digital currencies.
Cryptocurrency investors will be watching the development of what is already becoming a trade war between the US and its former trading partners with great interest, hoping that it could become another important factor in reinjecting energy into the Bitcoin market.
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