Fears of an escalation in the “tariff war” brought down the price of BTC on Friday.
“Don’t worry about China, everything will be fine,” Trump said.
Bitcoin (BTC) resumes an upward trend driven by signs of rapprochement between the United States and China. The digital currency is trading this Monday, October 13, around $115,000, recovering from the sharp fall last Friday, when it fell to $103,000 due to the uncertainty generated after the statements of US President Donald Trump.
The recovery began after a message from Trump on his social network, Truth Social, where pointed out:
Don’t worry about China, everything will be fine. The highly respected President Xi just had a bad time. He doesn’t want a depression for his country, and neither do I. America wants to help China, not hurt it!
Donald Trump, president of the United States.
After that publication, bitcoin began to regain ground, which reflected a change in risk perception among investors. This is seen in the following graph:
Optimism is also supported by analyzes of financial institutions. Economists from the Goldman Sachs group, including Jan Hatzius and Andrew Tilton, they wrote that “recent policy moves suggest a broader range of possible outcomes compared to previous US-China meetings.”
They added that “the most likely scenario appears to be that both sides retreat from the most aggressive measures and that the talks lead to an extension, possibly indefinite, of the pause in tariff escalation reached in May.”
If the negotiations between Washington and Beijing come to fruition, it is estimated that the resulting stability could benefit bitcoin and all crypto assets (which tend to behave as “risk” assets), consolidating its position as an alternative asset in a context of global volatility.
This, considering that on Friday, October 10, the cryptocurrency market experienced the largest liquidation in its historywith 20 billion dollars erased in just 24 hours, as reported by CriptoNoticias.