Trade tensions between the US and China appear to be easing as the two powerhouses come to agreement. The lifting of tariffs is good for economic stimulus but safe have assets such as gold are now starting to cool off, will Bitcoin follow suit?
US China Trade War Over?
Officials from both sides stated yesterday that tariffs could be rolled back as part of the first phase of a wider deal. Reuters reported that a timetable has yet to be set but both China and the US are in agreement that a trade deal can be made.
Experts have warned that there is still a lot of work to be done and the situation is fragile and can fall apart quickly. Optimism has returned to markets on the development as global stocks were boosted yesterday.
Goldbug and undecided Bitcoin detractor, Peter Schiff, didn’t miss the opportunity to point out that the precious metal is still investment worthy.
“Gold is selling off on the prospects of the trade war ending. But it’s not the trade war, but the war on savings waged by central banks that is behind gold’s rise. Future U.S. trade & budget deficits will now be larger than ever, making gold ownership more important than ever!”
Gold is selling off on the prospects of the trade war ending. But it's not the trade war, but the war on savings waged by central banks that is behind gold's rise. Future U.S. trade & budget deficits will now be larger than ever, making #gold ownership more important than ever!
— Peter Schiff (@PeterSchiff) November 7, 2019
It was pertinently pointed out further down the thread that precious metal prices are also susceptible to manipulation;
“Derivatives markets run precious metals pricing. JPM and many other bankster crooks caught numerous times rigging metals markets. It’s a farce with zero price discovery just like the equity and debt markets.”
Back in September it was widely reported that JP Morgan traders were accused by the DoJ of manipulating precious metal markets.
What About Bitcoin?
Analysts remain on the fence as to Bitcoin’s next direction and technical signals are ambiguous.
How many times have you flipped your bias in the last few days?
After big moves, $7.2k-$10k, consolidation is common and many people get chopped up trying to guess what's next.
Let PA develop and get involved when the direction becomes clear. pic.twitter.com/NHclZaTJMQ
— Mayne (@Tradermayne) November 8, 2019
One thing is for sure though, with the current banking/credit/debt crisis exacerbating, there will still be a huge need for a safe haven, be it Bitcoin or gold.
Source: News Btc