Binance Research: Bitcoin, gold and other defensive assets jumped in price after Trump's tweet

According to the observations of analysts at Binance Research, bitcoin, gold, Japanese yen, Swiss franc and 10-year US Treasury bonds immediately after Donald Trump's tweet increased almost simultaneously in value.

$ BTC has been racked up together with multiple safe-haven assets after Trump's latest tariff storm.

Will the trade war continue to be a catalyst for #Bitcoin 's price growth? ? pic.twitter.com/Ghf0eqvazF

– Binance Research (@BinanceResearch) August 2, 2019

At the same time, more risky assets fell – the Chinese yuan, the Dow Jones Industrial Average, NASDAQ 100, FTSE China A50 and WTI oil.

In a tweet published on August 1, Trump expressed regret that three months ago, China and the United States almost reached a common denominator and were ready to sign a trade agreement. However, at some point, China decided to change the rules of the game.

There are trademarks. We thought we had a deal with China three months ago, but it was sadly for China to re-negotiate. More recently, China agreed to …

– Donald J. Trump (@realDonaldTrump) August 1, 2019

Now, from September 1, a new 10% duty on Chinese goods worth $ 300 billion will begin to operate in the United States.

This suggests that the recent decision by the Fed to reduce the base rate is most likely due not so much to macroeconomic factors as to the desire to make American exports more competitive in the context of a trade war with the PRC, the completion of which can hardly be expected in the near future.

The above price dynamics of some assets shows that according to most investors, increased protectionism is fraught with risks of global instability. Therefore, market participants prefer a “safe haven” instead of risky assets.

“Will the trade war continue to play the role of bitcoin price growth catalysts?” , Binance Research researchers ask rhetorically.

Previously, BlockchainJournal has published extensive material on the impact of a trade war on stock markets, the global economy, and cryptocurrency.

Also recall, an article has recently been published on why bitcoin uncorrelated with traditional assets should be in the portfolio of every investor .

Follow BlockchainJournal on Twitter !