The past day has seen Bitcoin, and other major cryptos continue to increase their price points. This comes as the traditional stock market has seen substantial drops, mainly due to trade war fears. Could increasing uncertainty continue to drive the price of crypto higher?
Bitcoin pushes on towards $11,000
At the time of writing, the price of Bitcoin is trading at $10,804, according to CoinMarketCap. Bitcoin’s price has been trending upwards since it once again broke through the psychologically significant $10,000 barrier on July 31st.
However, the following market visualization from COIN360 clearly shows that this positive sentiment reflects on the broader crypto market. For example, Ethereum is trading above $222, and Ripple’s XRP token is trading at $0.315.
Perhaps even more tellingly, the total crypto market cap is currently surging back towards the $300 billion line. The total crypto market cap – at the time of writing – is valued at approximately $290.4 billion.
Although there is a multitude of possible reasons for the bullish rebound past Bitcoin’s $10,000 price point, one stands out. Specifically, analysts are noting that the escalating trade war may be driving the crypto market even higher.
Just yesterday, Toshi Times covered how one firm believes Bitcoin may be entering a ”perfect storm” of macroeconomic factors. Now, one can add growing trade war concerns to this list.
Will trade war concerns steer investors towards crypto?
In fact, the US stock market has plummeted these last few days. A few days ago, President Donald Trump announced that he would implement further tariffs on Chinese goods. As a result, the stock market in question has now fallen below its 50-day moving average.
Investors primarily fear that this will escalate the brewing trade war between the US and China. What’s more, this latest round of tariffs affects electronics – meaning that sizeable American technology firms relying on China-made electronics, such as Apple, will face higher prices.
Consequently, the Dow Jones Industrial Average has fallen 787 points since July 31st. Bitcoin, on the other hand, has rushed past $10,000 and is now trading closer to $11,000.
It remains to see whether investors will increasingly shift towards the cryptocurrency market as these trade war concerns grow.
However, it is entirely likely that investors will try to balance their portfolio by including crypto. This would not be the first time investors look to crypto for reduced stock market exposure.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.