Bitcoin has in the last 24 hours rallied, climbing from around $10,000 to hit $10,500 as we reported. One of the speculative reasons that triggered the rally was the announcement of additional tariffs by U.S president Donald Trump. In the last 24 hours, the president has made an announcement that will see the U.S-China trade war escalate.
The president says that there will be an additional 10% tariff on the remaining 300 Billion Dollars of goods and products coming from China. His announcement is expected to see the trade war hit new highs with China expected to announce their own tariffs.
Going into the new negotiations between the two countries this week, many were expecting the two to call a cease-fire. This was not the case as the U.S president once again proved to be unpredictable.
In a tweet the president stated:
“during the talks the U.S. will start, on September 1st, putting a small additional Tariff of 10% on the remaining 300 Billion Dollars of goods and products coming from China into our Country. This does not include the 250 Billion Dollars already Tariffed at 25%…”
Escalation of the situation is expected to begin once China responds. China is expected to respond with equal tariffs on goods coming from the U.S. As long as the trade war continues, the two economies are expected to continue suffering and for the two countries’ currency to lose value. For the U.S dollar, the situation is worse as the country has just recently announced rates cut, further hurting the value of the dollar.
Retaliation From China To Fuel Prices Further
The U.S and China are two of the largest economies in the world and their war is expected to be felt around the world. For many of the affected, the only safe haven to protect themselves from weakened currencies is by investing in Bitcoin.
Bitcoin has already spiked overnight by Trump’s announcement. The same is expected when China reiterates. Further down the road, the trade war will continue fueling Bitcoin to reach new highs and strengthen Bitcoin’s position as a preferred asset for many investors.