trump xi bitcoin

Tensions between China and the U.S. over steel tariffs and increasing protectionist measures on a global trade are predicted to drive a rebound in demand for Bitcoin and other cryptocurrenices as a store of value to hedge against political risk, according to investment analysts.

The recent escalation between President Trump and Chinese Premier Xi Jinping have resulted in a potential US$60 billion in tariffs being leived on goods in teh next few months and many fund managers are now looking at options to hedge against the significant risks these pose. 

Bitcoin as the “new gold”

“I think people are starting to use this as an asset class that you want to hedge…[Bitcoin] is the new gold…That’s my case for Bitcoin in the trade war,” Brian Kelly, hedge-fund manager at investment firm BKCM.

bitcoin

Stock markets have been routed in recent weeks sending both the Dow Jones industrial average and the S&P 500 plunging in fears of possible trade wars, as currencies are also getting weaker, with the dollar’s depreciating value and investors seeking a safe store of value.

“In this environment, people want to own those things that are deflationary and fixed supply in an inflationary environment. And look at what bitcoin has done the last couple of days…In the trade war, it does well,” Kelly added. 

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