Bitcoin looked cautious on Thursday as the United States and China announced that they would restart trade negotiations.
Chinese Vice-Premier Liu He and the US Treasury Secretary Steven Mnuchin and Trade Representative Robert Lighthizer earlier today spoke over the phone. The two sides decided to meet in Washington in mid-October to negotiate a win-win trade deal.
“On the basis of full preparation by the working groups of both sides, efforts striving for substantive progress will be made in the 13th round of China-US high-level economic and trade consultations in early October,” ministry spokesman Gao Feng said in an interaction with the press. “The economic and trade teams from both sides have maintained effective communication.”
Bitcoin, which many analysts projected as a speculative hedge against the US-China trade dispute, saw its uptrend coming to a halt. The benchmark cryptocurrency was trading 0.47 percent higher to trade at $10,623.99 as of 1100 UTC, hinting a slowdown in otherwise winning streak noted earlier this week – of up to 16.1 percent in the positive territory.
The Trade War-Bitcoin Correlation
The bout of enthusiasm for risk-on assets reflects investors’ willingness to move their capital from safe-haven assets. As Asian stocks performed well, hedging asset Gold lost about 0.5 percent of its value in spot markets. Meanwhile, the US Gold Futures too registered an intraday loss of 0.4 percent.
Bitcoin, like Gold, expects to remain under pressure as the US and China trade talks inject optimism into global stock markets. The cryptocurrency performed exceptionally well shortly after the US President Donald Trump slapped first of many tariffs on the Chinese goods in May this year. Its price surged by more than 150 percent, prompting investors to see bitcoin as the elephant in the room.
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