Bitcoin scared of trade war between China and US
The war between China and the United States hurts bitcoin
Investors fear worsening relations between countries
Bitcoin lost nearly 4% of its cost after Pompeo’s statements
International consortium news organizations, developing transparency standards.
In the first numbers May, bitcoin tried to return to region $ 9000. But attempts were unsuccessful and on the morning of May 4, the first cryptocurrency slipped to support in the area of $ 8500. Sale was triggered by risk aversion amid escalating conflict between the US and China.
States accuse China of misinformation
US Secretary of State Mike Pompeo stated in an interview with ABC News that the People’s Party of China deliberately hid the scale of the coronavirus disaster. Pompeo also commented that America has “enough quantity evidence that COVID-19 was developed in one of Wuhan’s secret laboratories “. Besides Togo, as the US Secretary of State said, already in January 2020 of the year China has cut exports of its protective funds and medicines, probably realizing that the coronavirus epidemic is inevitable.
Pompeo mentioned that some of the efforts made by the Chinese Communist Party went unnoticed, but others were explicit, eg, they are prevented U.S. medical professionals from visiting laboratories in Wuhan, the city where the virus originated, and silenced scientists.
Pompeo added that China “behaved like authoritarian regimes do, tried to hide, hide and confuse and used the World Health Organization in quality cover “.
“Exactly such things led to this huge crisis, huge human casualties and huge economic losses in all the world, ”he said. “Australians agree with that, you hear the Europeans start to say the same thing, and I think the whole world rallied together, realizing what China brought this virus to the world “.
This fact, which the, by opinion many experts, remains unconfirmed, will be the reason for redefining trade relations between the United States and China. Washington already trains Kisses a series of sanctions against Beijing, including the cancellation of US debt obligations and new trade policy towards China.
Bitcoin Fails Risk Avoidance
Immediately following Pompeo’s harsh statements, the S index&The P 500 fell 2.55%. Bitcoin again showed its tendency to correlate with risky assets and rushed down. As a reminder, in March the cryptocurrency market reacted to the decline in the Dow Jones and S indices&The P500 has gone down in history cryptocurrencies, like “bloody Thursday”.
Investors fear that worsening relations between China and the United States will again lead to a fall in stock markets and provoke another collapse bitcoin right before the halving. After all, China is a country with huge production potential and large export share in the world market. Reduced exports from China to the United States will deal a significant blow to the American economy and can provoke a second wave of cryptocurrency sell-offs.
In these conditions cryptocurrency traders prefer not to bet on the long-term, but to fix short-term profits $ 9000 mark is an one of those borderline levels that short-term investors. but and a dip below $ 8500 is unlikely until then, until mass sales will not start on world markets.
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