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Trade war stand-off sees Bitcoin soar
The price of Bitcoin has soared over the weekend as threats of a China-US trade war continue.

Trade war stand-off sees Bitcoin soar
The price of Bitcoin has soared over the weekend as threats of a China-US trade war continue.

The Chinese government has deflated its own currency, the yuan, to make products coming out of China cheaper for exporters.
One US dollar now buys 7 Chinese yuan, which has led investors to scope out the alternative currency, sending the value of Bitcoin skyward by approximately 12 per cent.
Private equity firm Apollo Capital’s co-founder and CIO, Henrik Andersson, said the trend of markets continuing to cut rates will see a corresponding rise in crypto assets.
He observed that “a trade war means lower growth, thus the yield on US 10-year government bonds (US10Y) went down.
“Lower growth means lower demand for oil, thus crude oil (WTI) fell. Stocks [and] S&P 500 (SPX) fell dramatically. Gold traded up and Bitcoin traded up the most,” he continued.
Mr Andersson cited not just the trade war but also the low cost of capital globally as reasons for the rise in alternative currencies such as Bitcoin.
“Right now, the world is going through a global easing cycle, meaning that as central banks are cutting rates around the globe, more fiat currency is printed.”
“This will likely create an increased demand for hard, scarce assets that can’t be inflated such as gold, land, real estate and Bitcoin,” Mr Andersson predicted.
Impact felt on the Australian markets
Following the news of global trouble, Australia’s equity markets have reacted in wobbly fashion.
The ASX 200 has plunged more than 2 per cent from 6,640 to 6,457 after markets had peaked at a new record high just one week ago.
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