If the US-China trade war escalates to new levels, Bitcoin (BTC) could soon reach 2017’s highs of $20,000 according to Christopher Vecchio, the senior currency strategist at DailyFX.
In a Kito News segment on June 3, Vecchio said that lately, Bitcoin has been inversely correlated with the Chinese yuan as when Bitcoin’s price rose steeply, the Chinese yuan weakened.
Per the news segment, Vecchio said:
“In an environment where the global financial system looks like it is potentially at risk because of the world’s two largest economies going at odds, people may be looking for alternative avenues to find ways to circumvent the capital controls being put in place to move their money around without the Chinese or U.S. government taking stock of it.”
Bitcoin Bull Run Dependent on US-China Trade War?
While Vecchio says Bitcoin could reach $20,000 again in the near term, he believes this is unlikely if the trading relationship between the United States and China is resolved. However, if their relationship worsens further, the analyst says the yuan will weaken even more and Bitcoin could benefit as a result.
Another take on Bitcoin’s near-term price outlook comes from Bitcoin bull, Mike Novogratz, who thinks Bitcoin will probably consolidate between $7,000 and $10,000.
Currently, Bitcoin appears to be experiencing a slight correction from its steep price increase from the beginning of the year. How low it will go is yet to be determined, but currently, it’s holding above $7000.
Do you think Bitcoin will reach $20,000 by the end of the year? Let us know what you think in the comment section below.