Earlier this week, the US-China trade war intensified again, with countries raising their export tariffs. Investors are buying gold and Bitcoin to protect themselves from "bullets."
Investors buy Bitcoin due to US-China trade wars
According to The London Economic, eToro’s retail investors are increasingly opening up gold and Bitcoin positions after the reports of an escalation of the US-China trade war.
Gold is the traditional "quiet haven." Investors often switch to this asset in times of crisis and uncertainty.
"This is because the supply of gold is limited, it has an application, and the price of gold is not influenced by the central bank’s decisions at key rates," says eToro’s analyst Simon Peters.
According to the expert, Bitcoin has similar characteristics. Because the maximum of the BTC issue is 21 million tokens, it is decentralized; inflation does not affect its price. In addition, Bitcoin is much easier to store. That is why it is not surprising that more and more investors are opting for BTC as a "quiet haven," Peters says.
Interesting in the section: Bitcoin Gold coins
- Peters also said that BTC still has many problems: excessive price fluctuations, hacking attacks, and accusations of the exchange rate manipulation.
- However, the fact that investors are switching to Bitcoin during periods of uncertainty may indicate a change in the perception of BTC. Investors seem to consider Bitcoin less as a highly speculative asset and more as a low-risk asset.
Editor: Alyona Nabok