Volatility in Bitcoin: Is the trade war between China and the U.S also living in the crypto world?

Volatility in Bitcoin War China USA

China’s war against Bitcoin and the main cryptocurrencies could have positive effects on the ecosystem, especially within the US where the local community would be taking advantage of market fluctuations.

The vertigo of the world of cryptocurrencies shows its nature at this time, with the ups and downs of Bitcoin and the rest of digital assets. For now, the weekend has started with some stability and close to US $34,000.

This week, Bitcoin had dodged the blow from China after a new operation against cryptocurrencies. But then he could not beat the Fed and the dollar. However, it is now rising above $33,000, when a few hours ago it was close to $31,000, its lowest level since the end of June. The rise of Bitcoin boosts the rest of the cryptocurrencies, although with moderate increases.

The billionaire investor and CEO of Galaxy Digital, Mike Novogratz, pointed out that China’s war against Bitcoin and the main cryptocurrencies could have positive effects on the ecosystem, especially within the US where the local community would be taking advantage of market fluctuations.

Likewise, he considers that the crypto world is today also the scene of the trade war between China and the United States. “What we are seeing is that Asia sells it and then the United States buys it again. China has declared war on cryptocurrencies as part of this broader cold war that we are getting into, so I think we are still assimilating it, “he opined.

The People’s Bank of China (PBOC) announced that it had called for the closure of a company that “was suspected of providing software services for virtual currency transactions” and reiterated its anti-crypto stance, warning institutions against providing services to related companies cryptocurrencies.

Bitcoin and the remnants of cryptocurrencies had been indifferent. However, after the publication of the minutes of the US Federal Reserve and the strengthening of the dollar in the world, prices took a swerve.

The document confirmed the reduction of its asset purchases and economists polled by ‘Reuters’ expect the Fed to announce a strategy for ‘tapering’ in August or September.

Now the market begins to look more closely at other cryptocurrencies, especially Ethereum. In fact, a Goldman Sachs report predicts that it could outperform Bitcoin.

“Ether currently looks like the cryptocurrency with the greatest potential for real use as Ethereum, the platform on which the digital currency is native, is the most popular development platform for smart contract applications,” the report says.