Geopolitical tensions could be the reason of bitcoin’s recent mini pump.
The past days Bitcoin’s price rise approximately 10% from $9700 to $10500 that we currently are. Many say that this happened due to the Argentinian capital controls.
Even if this was the sole reason behind BTC’s mini pump we have to think about the whole picture of things. There is currently a trade war between the U.S. and China and also an imminent no-deal Brexit.
Global economy at the moment reminds us the period before 2008’s recession. If the same thing happens again, I am not so sure they can “patch” it again.
Geopolitical Tensions Around The World
U.S. seems desperate to accumulate wealth that is coming from their number one trade partner, China. On the other side China knows the power it has as a global exporter and probably won’t listen to any U.S. threats.
On the case of U.K. a no-deal Brexit could complicate the economy of whole European Union and may have catastrophic results. But as European Union showed in the past, in the case of Greece, they won’t take their own heads of.
U.K. and the rest of E.U. know that these are difficult times and if the handle the things in the wrong way this maybe the end of E.U. as we know it. I believe U.K. and E.U. will give an extension on what they will decide until global geopolitical tensions calm down.
Now in the scenario where everything goes south, Bitcoin is here to protect the wealth of the people who will embrace it. This would probably result in a price pump, and we may see a $20k Bitcoin again or even new all time highs.
Image by Pete Linforth from Pixabay