This year 2019, Donald Trump is struggling with raising tariffs in trade with China by 25% while China wants to abolish all extra tariffs in force. The incident heats up after the US raised tariffs on Chinese imported products valued at US $ 200 billion. The US government said that China had violated a previously agreed agreement namely that Chinese law would be amended to enact new policies on trade matters ranging from intellectual property protection to technology transfer.
At the same time to this day, BTC has risen by 35% in October impacting investors in the market including private investors funding auto accident loans. Here is a picture of the increase taken from bitcoin trading.com against USD.
Is there a relationship between the two? Price War with Rising BTC Prices?
As we all know, at the same time, Bred Sherman, a senate from the Democratic party, said that the end result of cryptocurrency would not only weaken U.S. foreign policy but also state tax collection and traditional law enforcement. So he is gathering several state legal advisers to ban Crypto, whose position is certainly threatening the position of the U.S. Dollar. Meanwhile, as is well known, developers to form the Bitcoin (bitcoin network) are mostly U.S. citizens themselves, who want freedom from the influence of Central and FED banks.
Then what about China?
China is considered as one of the most important players in the cryptocurrency market. The Chinese government’s decision affects the entire industry, but cryptocurrency and Bitcoin are in a precarious position in terms of regulation. Chinese cryptocurrency laws are quite strict. Financial institutions are prohibited from using Bitcoin for trading and ICO is also illegal in China. The Chinese Bitcoin exchange is advised to stop operations in the domestic market until a license is made for them. At the beginning of the year 2018, China’s top financial authority advised that Bitcoin mining must be progressively halted via local government councils.
Chinese media present cryptocurrency as a tool for criminals and money laundering devices which of course will create negative background information that might have a bearing on the future of the Chinese Bitcoin ban. However, who is not familiar with Binance, OKEx, Huobi, and others, where the founder and operation of the BTC Exchange from China, which controls nearly 60% of the circulation of bitcoin circulation, has now reached 17,699,225 BTC from a total supply of 21,000,000 BTC. Just 24 hours ago, there was a 3.7 million BTC turnaround bitcoin which was equivalent to $ 29B USD (1 BTC ~ $ 7,863.83). In fact, as we discussed together, Binance as the largest Volume Exchange in the world, around May 8, was hacked with a total of 7000 BTC. Usually, consider it happening, then the market will experience daily changes such as when Coincheck, Mt.Gox, Bitfinex, Bithumb, etc.
There is a lot of speculation among traders about this. Among them, Douglas Tan (CEO & founder of Bitpascal) said that it was unlikely to reach its ATH, but its volume in the last 5 days was the highest from before. On the other hand, Danny Taniwan (co-founder of YIBN) said it might happen by the end of 2020. While the opinion of Bang Robby (Director of my account) said it would rise before the half-day, but sometimes the market would be corrected and profit-taking and for now it tends to rise. According to Oham (Executive Director of ABI), “bitcoin always makes us all surprised, always monitor it, it’s interesting, bitcoin doesn’t care what people think”.
Then, will the price of bitcoin always rise, even though it has been hit by FUD (fear, uncertainty, and doubt) both from the world government that is continuously banned, or the occurrence of hacking in exchanges, or trade war between superpowers?
On the other hand, from the existing FUD, there is also good news which is often referred to as the FOMO (fear of Missing out), which is about Bakkt. Bakkt is a bitcoin-based cryptocurrency retail payment platform developed by ICE (Intercontinental Exchange) formed in November 2018.
Before 2018 ended, Bakkt announced a very successful fundraiser. They managed to get the $ 182.5 million that had come from various Wall Street institutions such as Boston Consulting Group, Goldfinch Partners, Pantera Capital, Protocol Ventures, Galaxy Digital, and Microsoft M12 ventures. On May 13, it was announced that bitcoin-based futures will be tested until the end of July 2019. Of course, this will provide a breath of fresh air for traders on the futures exchange to increase the type of investment. This is in accordance with the approval of the CFTC (Commodity Futures Trading Commission) located in the U.S., which is one of the leading bitcoin regulators and other digital currency transactions in the world.