Bitcoin price drops to $10800 amidst US China trade war

The king of cryptocurrency Bitcoin (BTC) is ruling the crypto sphere but there are factors beyond it, that affect the Bitcoin price and some of them are political.

As things heated up between U.S and China in what was termed as “US-China Trade War” Bitcoin (BTC) the leading cryptocurrency enjoyed buyers from China as well as many spectators who hoped to benefit from this pump.

Now, however, the price has plunged below the eleven-thousand dollars ($11,000) mark following the announcement that the United States Trade Representative Office has delayed Tariff on selected Chinese Goods.

Bitcoin is currently trading for ten thousand eight hundred and forty dollars ($10,840) as the price fell by almost five percent (4.87%) across last days session.

At the start of the session (02:00 UTC+1) Bitcoin was priced at eleven thousand and four hundred dollars ($11400) at where it traded before the price fell to ten thousand and nine hundred dollars ($10,900) at 16:09 UTC+1.

Bitcoin price chart by Trading View

Previously Bitcoin traded at ten thousand eight hundred dollars ($10,800) was on 4th August after which price rose above twelve thousand dollars ($12,000).

From that point, the price declined steadily as it reached eleven thousand nine hundred dollars ($11,900) by August 9 before reaching ($11,500) by August 12.

Bitcoin price connection with US China trade

Bitcoin’s price has risen because of the same factor it declined. As U.S President Donald Trump announced a ten percent (10%) tariff on Chinese goods worth around three hundred billion dollars ($300B) while some experts predicted that it could rise to twenty-five percent (25%).

According to President Trump China had promised to make a huge investment in US agriculture but failed to keep its promise which triggered the tariff.

 

In another announcement, it was revealed that some goods were exempted from the tariff including technical gadgets like mobile phones, computers, and video game consoles.

As Bitcoin price fell by over four percent (4%) the US benchmark S&P stock index which had previously fallen has risen again. It is no surprise as the pair shows inverse correlation as when one rises the other falls and vice versa.

This post was last modified on August 2, 2020 5:32 am

Ahmad Asghar

A first generation gamer at heart and tech buff by nature, have been involved in the tech sector for better part of a decade. With that insight and knowledge, he now covers blockchain, cryptocurrency and everything fintech so others can make sense of the industry.

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