US-China Trade War
Given the recent feud between the US and China, things are set to escalate after new sanctions that were meted out by the United States of America have targeted china and the crypto market. The US government are set to impound Chinese businesses and hold on to their asset after they passed a new law that will limit the rights of citizens in Hong Kong. With the latest US-China trade war predicted not to affect Bitcoin and the crypto market as a whole, things are set to change as a result of the new sanctions.
American government implements new sanctions amid the latest US-China trade war
Brad Sherman, a US rep granted an interview with Market watch where he spoke about the sanctions while giving hints that America is trying to get Chinese companies to limit their stronghold in the country. He noted that the newly implemented law was not created to eliminate Chinese companies from American soil but to make sure they follow the existing laws of the financial market in the country. “The main point of the act is not to force Chinese companies away from America but to make sure they follow the rules. Every country does it by implementing a law that protects its financial market, so if China wishes to stay here (America), then they will follow the law”, Brad Sherman noted.
China is known to be one of the biggest traders when it comes to trading with the US dollar across the globe, removing Chinese firms from American markets would have several impacts on its economy. The impact would be so much worse and would force major key players in the country to take to crypto as a shield. Sherman urged the American government to abolish crypto as far back as 2019 because he feels that they will threaten American market values and structure, this new law would protect the market and out more tension on the crypto market.
Bitcoin threatened in latest feud
Bitcoin has always been seen as the last resort especially in the latest US-China trade war, and we could see other investors take to budding assets in the financial markets like gold. With data suggesting that Bitcoin has about 60% in supply that has remained in a place for over a year. This same trend happened in 2017 which saw the price of the leading crypto surge as high as almost $20,000.