In an article entitled, Did the US-China trade war and Donald Trump just make bitcoin investors a small fortune?, the South China Washington Post note that the value of cryptocurrency has risen by 26.5 per cent since president announced he would raise tariffs on Chinese imports while the Yuan, meanwhile, has fallen to its lowest level for six months.
The rising trade tensions between China and the United States and a weakening yuan appear to have been good news for owners of bitcoin, with the value of the cryptocurrency soaring over the past two weeks.
Between May 5 – the day US President Donald Trump announced he would raise tariffs on Chinese imports – and Friday morning, the value of bitcoin rose by 26.5 per cent to US$7,878, according to figures from cryptocurrency exchange OKCoin. The price fell to US$7,200 later in the day as investors cashed out.
Garrick Hileman, head of research at Blockchain.com and a researcher at the London School of Economics, said he and other analysts had been watching the movements of the two currencies.
“We are observing a strong inverse correlation between the RMB’s value and bitcoin, meaning that recent RMB declines over trade tensions have been closely matched by increases in the value of bitcoin,” he said using the short form of the Chinese currency’s official name, the renminbi.
Another possible reason for bitcoin’s recent price increase is the higher number of transactions involving the cryptocurrency and the positive remarks made about it during New York Blockchain Week.