Bitcoin had a fall back some weeks ago due to China currency control and lost a fifth of its price but has not been able to get below the support mark of $860. It has been howering around that value upto $880. This has been on for some days now and it seems it is rallying for a big jump. Don’t believe it, let me tell you why.
China currency controls had been tweeted overly by the soon to be President of the United States: Donald J. Trump. Donald Trump sees China as a country ripping others off by currency controls and they just recently caused the price of bitcoin to lose a fifth of its value by publishing a statement to its people that bitcoin has no value backing it and therefore no currency for exchange of value, this was after holding a meeting with the biggest bitcoin exchanges in China inorder to consolidate the use and value of its Yuan. The President elect of the US has been talking …no tweeting about China Currency controls…and they know immediately he steps into power he would be watching them like a hawk for any such changes.
Investors have also been on the lookout for changes in the dollars immediately the inauguration takes place as events within the inauguration would decide which way the dollars slides against other fiat currencies especially the euro and the yuan.
US-China trade war coming
The battle for manufacturing supremacy is about to begin as the US and China go head to head as each looks to fuel demand and inject more growth into their respective economies. Will the US currency be the next one to devalue because unlike before China is ready for them now.
Bitcoin is at the right place and at the right time and a safe haven for investors. Its value would most likely climb to be $2000 and with over 30+ banks in negative interest rates, things could only get worse for fiat currencies.