Binance Research, The research group of the world’s largest crypto exchange, claims that President Donald Trump’s speech about BTC and LIBRA may have caused the latest bitcoin price spike.
Binance Research made the specious claim on Twitter, where stated that: “BTC has joined other multiple safe-haven assets and that Trump’s latest tariff storm would be another boost.
some analysts say that somehow the trade war correlates with the boost, is this really true?
Specifically, Binance Research suggested that the bitcoin price rallied this week due to Trump’s escalating tariff war with China but how true can this be?
We might as well imply that geopolitical uncertainty might be causing investors to seek refuge in other assets gold, silver, BTC and so on(Safe-haven assets).
U.S. Treasury bills. Safe haven assets are believed to offer protection against stock market downturns.
Binance tweeted a chart that apparently showed a correlation in the price movements of bitcoin, gold, the 10-year U.S. Treasury bill, and “safe haven” currencies such as the Swiss franc.
The Binance Research’s claim is a bit similar to that of the CEO, Changpeng Zhao. Last week, Zhao told CNBC that Trump’s criticism of cryptocurrencies is extremely bullish for the industry.
Zhao is correct that Trump has not taken any actions to hamper the growth of the crypto industry in the United States. He merely said that he’s “not a fan of bitcoin or other cryptocurrencies,” citing their extreme volatility.
Trump also expressed concern that bitcoin could undermine the U.S. dollar and might be used to facilitate money-laundering and other crimes. His objections are not new, as they are often cited by crypto critics in explaining their skepticism
The reason behind the increase is unknown, what is however certain is that investors are not backing down. BTC appears to be holding its stand as one of the most profitable investments.
Thanks for your time