Bitcoin price could rally even as global trade war rages on — Here is why

Key Points

  • Bitcoin price could soar if the US trade war with China leads to meaningful negotiations.
  • The S&P 500 index experienced significant losses, dropping 14.7% between April 2 and April 7, impacting Bitcoin's price.
  • Rising US debt issues and potential interest rate cuts could support Bitcoin's price growth.
  • The US Dollar Index (DXY) has weakened, potentially benefiting Bitcoin as a hedge against dollar devaluation.

Summary

The article discusses the potential impact of the ongoing US-China trade war on Bitcoin's price. Despite the US imposing 104% tariffs on Chinese goods, which led to a significant drop in the S&P 500 index, Bitcoin could still rally if trade negotiations progress. The uncertainty in the stock market, coupled with rising US debt issues, has led to speculation that Bitcoin might benefit from these macroeconomic conditions. The US Dollar Index's decline and the possibility of interest rate cuts by the Federal Reserve are seen as positive for Bitcoin, as investors might turn to it as a safeguard against inflation and dollar devaluation. However, the short-term correlation between Bitcoin and the stock market remains, suggesting that Bitcoin's price could be influenced by broader market trends. The article also notes that while predicting Bitcoin's breakout timing is uncertain, prolonged trade war issues might drive investors towards Bitcoin, especially with fears of a potential US dollar weakening.

cointelegraph
April 10, 2025
Crypto
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