With ongoing trade tensions between the US and China, Bitcoin could be a MAJOR beneficiary. Analysts speculate that the HIGH tariffs imposed by the Trump administration on Chinese goods could weaken China’s economy. This may lead capital to move towards Bitcoin, particularly as China tightens capital controls.
The Chinese Yuan has hit its lowest in 16 months. Similar to the 2015 scenario, Bitcoin could experience a sharp rise in value following the Yuan’s depreciation. Financial institutions like Standard Chartered and Bernstein predict Bitcoin could reach 200,000 USD by 2025, highlighting its potential as an alternative asset.
Trump’s administration is seen as favorable to cryptocurrencies, strengthening market trust in Bitcoin’s future. Strategic appointments, such as Paul Atkins from SEC, support this stance. With China’s USD 284 billion stimulus showing limited impact, Bitcoin’s appeal as an alternative asset rises, offering a hedge against economic uncertainties.