At press time, Bitcoin prices are unexpectedly up, surging by $500 in one hour. But given what lies ahead and the role of BTC going forward, analysts are confident that there is more room for expansion heading into a definitive 2020.
Before then, all eyes are on President Trump and China’s negotiators and what the UK General Election has to offer uncertain traders, ready at a moment’s notice to shift funds to safe haven assets like Gold and now Bitcoin.
Will the Equity Market Sell Off?
The equities market sits at a precarious position. With the focus fixed on President Donald Trump–whose policies, while protectionist, he argues, benefits the American economy — could hurt portfolios if a deal isn’t struck within 10 days. Its aftermath could see the S&P 500 and other gauging indices break down, dragging the global economy with it.
Such a scenario will be perfect for BTC, which by design, is censorship resistant thanks to its global, decentralized nature giving it a store of value status, a preserve for Gold, a non-interest yielding but scarce asset.
No-Deal by Dec 15 and More Tariffs Expected
Given today’s jump in BTC prices, less than 24 hours after President Trump said he had no fixed deadline for the US-China trade deal, it could be hinting of a real possibility of an impasse.
The markets, according to reports, are already tizzy and predictably grappling with a prospect of a no-deal that will throw the equity into a downward spiral as the US unleashes another round of damaging tariffs on Dec 15. Commenting on President Trump’s comments, UBS Art Cashin told CNBC:
“I don’t think it would cause a big swing one way or another. I think they would say, obviously negotiations are still going on. The reason you’ve had two pretty significant down days is, people were believing there would be a deal by the end of the year. Now, that’s clearly in doubt and that’s where we’re going.”
“Then there’s another sell-off. If they put on additional tariffs and he bumps them by 10% or 15%, a sell-off but nothing severe. 50% or something like that? Better put on your helmet.”
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Dalmas is a very active cryptocurrency content creator and highly regarded technical analyst. He’s passionate about blockchain technology and the futuristic potential of cryptocurrencies and enjoys the opportunity to help educate bitcoin enthusiasts through his writing insights and coin price chart analysis. Follow him at @dalmas_ngetich