By CCN.com: In the last 24 hours, following a strong week, the bitcoin price slipped by around $157, dropping by nearly two percent against the U.S. dollar amidst an insense stocks sell-off.
The Dow Jones is set to open with a 500-point drop after U.S. President Donald Trump announced the imposition of additional tariffs on $200 billion worth of Chinese goods, leading both the U.S. and Chinese stock markets to plunge.
A slight correction in the crypto market occurred simultaneously as stocks declined substantially in value, raising questions on the correlation between crypto and stocks.
Will Global Uncertainty Lead to Bitcoin Investment?
On May 6, after President Trump expressed his intent on raising tariffs due to the lack of progress on the trade talks, the Shanghai Composite recorded its biggest drop for the first time since February 2016.
Although the Dow is set to open with a large several hundred points drop, the unexpected statement of Trump had a bigger impact on the Chinese market than the U.S.
For 10 months, China has been paying Tariffs to the USA of 25% on 50 Billion Dollars of High Tech, and 10% on 200 Billion Dollars of other goods. These payments are partially responsible for our great economic results. The 10% will go up to 25% on Friday.
325 Billions Dollars of additional goods sent to us by China remain untaxed, but will be shortly, at a rate of 25%. The Tariffs paid to the USA have had little impact on product cost, mostly borne by China. The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!
There exists a possibility that the recent tightening of U.S. dollar withdrawals by the Chinese financial authorities could raise the appetite for bitcoin as an uncensorable alternative to the U.S. dollar and other safe haven assets like gold.
China imposed a strict ban on bitcoin trading in late 2017. But through various…