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Bitcoin’s [BTC] recent rally speculated to be indirectly correlated to US-China trade war, global stock market scenario

Rishi Raj

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Bitcoin's recent rally might be indirectly correlated to US-China trade war and global stock market scenario, experts speculate
Source: Pixabay

Bitcoin [BTC] has been riding the bull wave for some time now. It crossed the $8000 mark and the 24-hour price saw a 1.40% gain, at press time. Many top analysts and economists associate this gain to the overall drop in the global stock market’s value. Coin Share’s CSO, Meltem Demirors, made news after she commented that there could be an indirect correlation between trade wars and the global stock market scenario, while also adding that it could be a factor in Bitcoin’s recent rally.

Dovey Wan, Co-founder of Primitive Ventures, hinted at the similarities in the uptrends of Bitcoin and USD during the ongoing trade war, in a tweet dated May 14.

The trade war between the US and China resulted in the Chinese Yuan dropping by 2% against USD. In response to this, prominent figures in the cryptocurrency world claimed that Chinese investors have invested in alternative holdings such as Bitcoin and Dollar.

According to a Forbes report, Phillippe Bekhazi, CEO of XBTO, shared similar thoughts as Wan,

“There’s a booming business in stable coins because people are getting money out of China and Hong Kong.”

Bekhazi also claimed that several people and traders were selling and dumping their native currencies and adopting stablecoins such as Tether.



Reports also suggested that Gary Shilling, former Chief Economist and President of A. Gary Shilling said,

“Consequently, people look for any way they can take their money out … I wouldn’t be a bit surprised that bitcoin is a beneficiary of that.”

Dave Chapman, Chairman of OSL, a Hong Kong-based OTC firm, also gave his inputs on the subject, making an unconfirmed guess that China contributed to 20% of the crypto-trade volume, a percentage that is bound to increase if present trends continue.





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Bitcoin

Bitcoin surges by ~7% in under an hour; Has the rally finished correcting?

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Bitcoin surges by ~7% in under an hour; Has the rally finished correcting?
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Bitcoin’s price rally in a parabolic curve led most of the community to believe that this was the bull rally, however, the correction of this surge was due, which began on May 16.

The correction wave, as expected by many prominent traders was approximately 30-40%, which would put the price of Bitcoin $5,000 to $5,800. However, the correction seems to have finished as the price of Bitcoin surged by more than 7% in less than an hour.

Source: TradingView

The market cap of Bitcoin, at press time, was $136 billion and most the volume for Bitcoin was coming from BitMEX exchange via trading BTC/USD derivatives. BitMEX contributed a total of $3.38 billion in terms of trading volume, which is 12% of the total trading volume.



A Twitter user @DoveyWan suggested a head and shoulder pattern for Bitcoin:

CNBC suggested something similar, however, the pattern doesn’t seem to be holding. A Twitter user @thecryptomonk, tweeted:





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