Bitcoin price to surge in line with gold as U.S.-China tensions heighten
Bitcoin is due to surge this week as it safeguards its status as a safe haven as tensions heighten between the United States and China.
The price of Bitcoin – the world’s largest cryptocurrency by market cap – rallied beyond the $10,000 key resistance marker this week, and now all eyes are on the critical $10,500 mark.
As I was quoted by various media outlets including The Independent, Business Insider and Market Watch amongst others, Bitcoin bulls and new cryptocurrency investors could make this happen this week as tensions between the U.S. and China escalated.
Last week Washington closed the Chinese consulate in Houston, and in retaliation, Beijing shut down the U.S. consulate in Chengdu.
As such, investors are eyeing safe haven assets, like Bitcoin and gold, the latter which hit record price highs on Monday.
Bitcoin is currently realising its digital gold reputation. To date, gold has always been regarded as the ultimate safe haven asset, but Bitcoin – which shares gold’s traits of being a store of value and scarcity, could remove gold from this top spot as the world becomes increasingly technology fuelled.
Indeed, geopolitical issues such as the tensions between the U.S. and China, will lead to shrewd investors to heighten their exposure to decentralised, non-sovereign, secure digital currencies, including Bitcoin, to protect them from the turbulence of traditional markets.
I’ve often said that cryptocurrencies are widely recognised as the future of money. However, Bitcoin and its peers are now becoming increasingly regarded as a safe haven in the present.