Forbes: Trump Determines Bitcoin's Price Trend in 2020

This week, Forbes wrote that next year's US President Trump's election and the situation of the Sino-US trade war will determine the price of Bitcoin.

The article states that the price of Bitcoin, the cryptocurrency with the highest market value, is related to the Sino-US trade war. Currently, the Sino-US trade negotiations have made phased progress, so the price of Bitcoin is slowly but steadily falling.

While the trade deal between the two countries is a huge positive for the stock market, it is bad news for the crypto market as it reduces China's demand for this safe asset that is insulated from trade disputes and the depreciation of the RMB.

So we can see that when the negotiations between the two sides are tense, the price of Bitcoin will rise, and when the two sides make progress, the price of Bitcoin will fall.

Bitcoin’s price chart shows that the cryptocurrency is trading in a descending channel and may soon fall to its year-round low. However, if the US-China trade war revives, it could rebound above $9,000.

Now, the key factor that determines the two possibilities lies in whether US President Trump will be elected next year.

If there is a good chance that he will win the election next year, China will want to reach a settlement as soon as possible and the two sides may reach an agreement early because China does not want to engage in more severe negotiations after Trump actually wins.

If Trump does not have an advantage in the election, it may be difficult for the two sides to reach a settlement, and Trump will use attacking China as a campaign strategy, which will make the trade war more intense and thus increase the price of Bitcoin.

So, if Trump wins the election, Bitcoin will fall, and vice versa. But when the election is over, Bitcoin's price trend may reverse.

Image source: pixabay

AuthorXiu MU

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