Bitcoin Rally Falters as Stocks Drop Ahead of Trump’s China Speech

Bitcoin’s bulls are taking a breather amid jitters in the traditional markets over rising tensions between the U.S. and China. 

Bitcoin Price Index. ” data-reactid=”20″The world’s biggest cryptocurrency is trading near $9,400 at press time, having posted an eight-day high of $9,620 on Thursday. Prices have gained 8% so far this week, according to CoinDesk’s Bitcoin Price Index. 

Investing.com.

” data-reactid=”21″While bitcoin looks to be consolidating on recent gains, major European stock markets are flashing red for the first time this week. Leading the way lower is Germany’s DAX, down 1.5% on the day, followed by France’s CAC, which is reporting a 1% decline. Across the pond, futures tied to Wall Street’s equity index S&P 500 are down 0.5%, as per Investing.com.

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Markets look to have become cautious ahead of President Trump’s response to China’s decision to implement a national security law in Hong Kong, putting the jurisdiction’s autonomy in doubt. 

Trump told reporters on Thursday. Trump warned earlier this week it would impose sanctions on China if the law is introduced. ” data-reactid=”24″“We’ll be announcing what we’re doing tomorrow (Friday) with respect to China. And we are not happy with China. We are not happy with what’s happened,” Trump told reporters on Thursday. Trump warned earlier this week it would impose sanctions on China if the law is introduced. 

The expectation is Trump will announce some symbolic sanctions against individuals and companies. That said, with the presidential elections due in November, a bigger action cannot be ruled out. The resulting geopolitical tensions could bode well for bitcoin as many analysts and investors consider it a safe haven asset. 

bitcoin] due to a combination of excess stimulus from all the major central banks (ample liquidity in the system) and pick-up in geopolitical risks.”” data-reactid=”26″“I expect serious anti-Chinese rhetoric in the coming days/weeks/months as Trump tries to use nationalism/protectionism and anger towards China/COVID as a major catalyst for support,” Phillip Gillespie, CEO of B2C2 Japan, told CoinDesk in an email. “I am personally bullish [on bitcoin] due to a combination of excess stimulus from all the major central banks (ample liquidity in the system) and pick-up in geopolitical risks.”

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Meanwhile, analysts at Stack, a provider of cryptocurrency trackers and index funds, believe the geopolitical tensions have created a “perfect storm” for the cryptocurrency. 

in a weekly report on Thursday that the cryptocurrency’s week-to-date gains…