Bitcoin, the first successful cryptocurrency, has dropped to a new low of under $7000 on the 24th of November. At the time of writing, Bitcoin is trading at $6,794 on price index.
China/US Relations Possibly Souring
Crypto isn’t the only thing taking a plunge, either. The conventional markets have also cooled down by the close of the 22nd of November. The more lukewarm reception to global trading is more than likely due to the growing Hong Kong debacle. Recently, the US has started to take steps against China for its treatment of the nation. It’s come to a head with Robert O’Brien, US national security adviser, stating President Trump won’t look away from China’s treatment of Hong Kong.
This will invariably throw a spanner in the works of the US-China relations. The atmosphere has been improving somewhat as of late. Before the Hong Kong debacle came to a head, there were hopes of finalizing trade negotiations and finally ending the trade war between two of the world’s largest superpowers.
All-Round Bad Day
The conventional markets took a toll because of this bleak political future. S&P 500 index only managed to scrape together a 0.2% rise today, totaling at 3110.29. Suffering the same fate, the Dow Jones Industrial Average only managed a 0.39% rise that totaled 28 875,62. The Nasdaq Composite fared the worst in terms of growth between these three, clocking in at 0.16% and completing on 8 519.88 in value. This information was sourced through MarketWatch’s data.
Even if the price of Bitcoin has fallen, there is no clear indication that the money is moving away from the crypto industry.
Other significant forms of Crypto, such as Ether and XRP, have taken a hit as well. Ether has gone down a massive 7.38% in trading value, and XRP has received 4.29% of a hit, according to the Messari crypto data provider.
According to an article from BusinessInsider, the trade war has far more significant implications than simple money from imports and exports. Many experts speculate that China is trying to leverage their way into a politically superior position by prolonging the war.
The US President, Donald Trump, has blasted out his own narrative that China is “desperate” to settle the trade wars. The statement is up for argument by many experts, with China having taken measures to promote money flow in their country. However, the steps could have been for other reasons, as well.
Instead, it’s become clear that China thinks Trump is simply too unpredictable. Even if they possibly see him as a convenient tool to undermine the US, his sheer lack of consistency has made China want him out. That is a very amusing thought.