According to reports, investors have been pumping funds into BTC. This comes at a time when the two largest economies in the world, the United States and China lock heads in a trade war. Going by a recent analysis of data given by trading platform eToro, traders have reportedly been “plowing money” into BTC since the trade war between the US and China began. Data from eToro highlights at least three important dates that Bitcoin trades increased sharply via the exchange, according to the Business Insider.
May 25 is the First Date and June 25 the Second: BTC Gained 139% and 40% Respectively
The first date among the three key dates is on May 25. At the time, the number of new Bitcoin investments soared by 139%. This occurred after China increased the tariffs on $60 billion worth of United States goods.
The second significant date in the period occurred on June 25, when Bitcoin’s positions jumped by 40%. At the time the US reportedly announced that it was willing to suspend the war by not issuing a new round of tariffs over the $300 billion worth of Chinese importations. This was because the negotiations between the superpowers, Beijing and Washington had resumed once again.
On August 13 Bitcoin Rose by 123%
Finally, the third date of significance is August 13. At that time Bitcoin’s positions soared by 123%. This occurred after the US officially suspended placing tariffs Chinese goods until December.
According to Simon Peters an analyst with the eToro platform, both Bitcoin and gold seem to be reacting to the events caused by the US-China trade war. In his words:
“By comparison, Bitcoin shares similar characteristics with gold in the sense that there will ever be a finite sum of both items in existence and, it’s decentralized. Hence, its price isn’t really affected by inflation. It also has an additional benefit over gold such as lower storage costs. However, the issue of high price volatility, network hacks and several allegations of price manipulation have continued to weigh on BTC’s reputation. But Bitcoin’s correlation with gold on the eToro platform could be a signal that the overall perception or idea of bitcoin is shifting from speculative to the low-risk store of value gradually.”
Alex Krüger Claims This is the First Distinct Reaction BTC Has Due to the Trade War
Meanwhile, crypto analyst, commentator and economist Alex Krüger, has declared that Bitcoin only recorded its first real-time reaction to US-China trade war with this research given by eToro.
According to what was seen in Krüger’s post on the matter and going by his timing, Bitcoin shot up this past Friday. Which was immediately after the United States President, Donald Trump unleashed a tweetstorm about the ongoing trade war with Beijing. Trump said he will be increasing existing tariffs on the Chinese goods by 30%.