The increasing political and economic tension between the United States and China has led to a steep increase in Bitcoin value.
The US-China trade war has been escalating for the past several months, and just recently, China increased tariffs on US products once more.
Right after the announcement, the value of the cryptocurrency spiked by more than three percent (3.52%), reaching more than ten thousand dollars (USD 10,449) per coin.
Cryptocurrency value is very fluid, and significant political disruptions have an effect on valuation. In recent weeks, Bitcoin valuations were affected in both positive and negative ways by the increasing tension. Usually, when the US raises tariffs, the value of Bitcoin drops, and when China does so the value increases.
US-China trade war
The political and economic tension between the United States and China has resulted in severe consequences. While cryptocurrencies like Bitcoin might be experiencing a rise in value, there are negative results from the disagreement.
A recently uncovered example of the results of the trade war is the monitoring in Chinese students attending higher education institutions in the United States. A number of professors and education professionals have expressed concerns about the morality of intelligence agencies poaching universities for such information.
Politics have a significant effect on the value of cryptocurrency, as policies and regulations often concern the finance world. Another reason for the spike in Bitcoin value is the lack of new information from the US Federal Reserve in regards to interest rate cuts and cryptocurrency regulations.
According to experts in the field, if interest rates continue to drop, the price of a single Bitcoin will continue to increase. This prediction is mainly due to the lack of trust in traditional banks and the economy.