As the ongoing US-China trade war escalates, Bitcoin's price could potentially rise if meaningful negotiations occur. Traders had hoped for a last-minute solution to avoid 104% tariffs on Chinese goods, but the confirmation of these tariffs led to a significant drop in the S&P 500 index, prompting concerns about Bitcoin's ability to maintain bullish momentum. Despite a sharp decline in the stock market, some investors view Bitcoin as a safeguard against fiat currency devaluation. The persistent short-term correlation between Bitcoin and the stock market may cloud its prospects, yet rising US Treasury yields suggest growing fiscal challenges, potentially hindering the US dollar's strength. Economic forecasts indicate that the Federal Reserve may adopt a wait-and-see approach, maintaining interest rates, which could drive investors toward scarce assets like Bitcoin as tensions persist in trade negotiations. Prolonged trade conflicts might steer more attention to Bitcoin amid fears of recession and currency debasement.

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