By Ifaenyi Egede (Nigeria)
A recent report has shown that Bitcoin demand may increase significantly as a result of the impending trade war that is about to tear the global market apart. CEO and chief investment officer of Concentrated Leaders Funds, David Sokolsky, reportedly told CNBC that he is predicting that major leading economies around the globe will go head to head with China’s way of handling the COVID-19 pandemic. Furthermore, The United States of America president, Donald Trump has asked that an investigation on China be opened to look into the outbreak of the Coronavirus pandemic.
David Sokulsky has predicted that this latest development of pointing accusing fingers at china might start up another trade war, which would be worse than the one that involved China and USA last year. The CEO also stressed on the climate, saying it has its way of making the global economy growth move at a slower pace. “That’s a major risk which isn’t being priced in at the moment,” he explained. “As we pass peak infection rates, the politicians are going to want to blame somebody, and the obvious target for that blame is China,” the CEO said.
Also read:What Role Does Bitcoin Play In Trade Wars ?
The latest comment by the CEO left so many investors who are dealing in China and offshore markets with little information to grasp. Many are now in a panic state as they are anxious about a repeat of the trade war between the US and the Asian country which caused slow growth in the US economy because of tweets made by Donald Trump.
China also suffered some brunt as the currency of the Asian nation dragged low considerably as the currency went below $7 a unit in the stock exchange. Around the same time that the war happened, Bitcoin recorded a massive 35% surge in price, which got most people saying that Chinese investors made a move to help the country from devaluing the Yuan.
Bitcoin Is A Safe Haven In 2020
As a result of the trade war that occurred last year, Bitcoin experienced a massive surge in price which has prompted analysts to say that Bitcoin might prove a haven in this COVID-19 pandemic period. Even as more global central banks are printing emergency cash to distribute to their citizens, most of the citizens are looking to crypto to be their fortress in these trying times. As in the case of US citizens that were reported to have used the $1,200 paychecks they got to buy Bitcoin. A new trade war might make the adoption of the leading digital asset go wider.
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