eToro: the number of Bitcoin positions is growing with each round of the US-China trade war

Along with gold, investors are actively buying bitcoin against the backdrop of a tougher trade war between the US and China. It is reported by Business Insider , referring to the data platform eToro.

Over the past four months, amid the escalation of protectionism, the number of transactions with Bitcoin on the eToro platform has grown by 284%. Over the same period, the number of transactions with gold increased by 73%.

Synchronized activation of trading activity often occurs against the background of important events in the international economy. Thus, it is possible that along with the noble metal, investors began to perceive BTC as a protective asset. In support of this thesis, analysts cite several key dates:

• May 13th . Following China’s retaliatory action against the United States in the form of $ 60 billion worth of goods, the number of open gold positions on eToro increased by 108% during the day. During the same time, bitcoin positions grew by 139%.
• June 25th . Following reports that the United States is postponing the introduction of additional tariffs on Chinese goods, a similar, although less pronounced effect occurred after the meeting of Donald Trump and Xi Jinping: positions in gold and bitcoin increased by 26% and 40%, respectively.
• August 13th . After Washington postponed the introduction of new tariffs, positions in BTC increased by 123%, and in gold – by 60%.

We also note that recently, against the background of Beijing’s intention to introduce tariffs on American goods worth $ 75 billion, global indices reacted with a decline, while Bitcoin immediately rushed up .

Data: eToro

According to eToro analyst Simon Peters, gold, being a scarce asset with usefulness and intrinsic value, has never been affected by changes in central bank rates. As a result, noble metal has historically served as a safe haven for investors during times of economic and political turmoil.

“Bitcoin, by comparison, has characteristics similar to gold in the sense that its offer is strictly limited to 21 million coins. In addition, it is decentralized, not subject to inflation, and also has an advantage over gold in the form of lower storage costs , ”Peters added.

On the other hand, bitcoin is more volatile than gold, and therefore a more risky asset. However, Peters emphasizes, investors seem to be starting to be much warmer about the first cryptocurrency.

“Extreme volatility, hacks, and allegations of price manipulation still affect BTC’s reputation ,” the analyst shares his thoughts. “ Nevertheless, correlation with gold may be a sign that the overall perception of bitcoin is gradually changing from a speculative asset to a low-risk means of preserving value.”

Recall that previously a positive correlation between Bitcoin and the “fear index” VIX was discovered by CoinDesk analyst Omkar Godbow.

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