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Bitcoin News
Bitcoin Clueless as ECB Cuts Rate, and US-China Delay Tariffs
Bitcoin erased earlier gains on Thursday as US President Donald Trump said he would delay an increase in tariffs on Chinese goods.
The benchmark cryptocurrency was trading at ,156.85 in post noon European trade, down by .35, or 0.03 percent, since the market open. Late yesterday, it touched a session high of ,297.12 but failed to extend its profits as investors explored opportunities in risk-on assets. More specifically, they waited for the European Central Bank to deliver an economic easing package, as its president Mario Draghi takes the stage to publicize his monetary policy decisions.
Note: As of this time of writing, ECB has announced that it is cutting deposit rates from -0.5 to -0.4. It is also introducing a 20 billion economic easing package. Bitcoin is up by .
Breaking News
Draghi goes out with mini-bang as ECB goes back to its toolbox and pulls out quantitative easing just nine months after ending the program.+20 billion Euro QE for as long as needed
+Deposit rates -0.5 from -0.4some were looking for even more draconian moves
— Charles V Payne (@cvpayne) September 12, 2019
Investors Go After Risk-on Assets
A broad consensus of economists shows that ECB could push their interest rates into negative territory. They also see a new monetary easing of the sovereign and non-financial corporate bond purchases on the horizon. The move could eventually weaken the Euro, sparking a parallel trade war with the US, especially when Trump has threatened to slap extra tariffs on German automobiles and French wine.
European Central Bank, acting quickly, Cuts Rates 10 Basis Points. They are trying, and succeeding, in depreciating the Euro against the VERY strong Dollar, hurting U.S. exports…. And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!
— Donald J. Trump (@realDonaldTrump) September 12, 2019
The US president is, nevertheless, appearing softer on the trade war he is already fighting with China. He delayed an increase in tariffs on 0bn worth of Chinese goods by 15 days. His decision came after Beijing suspended tariffs on some US imports, signaling the first signs of trade resolve before the two sides meet in October for further negotiations.
Global stocks gain w/Asia equities hit 6week high on goodwill trade gestures and on hopes that the ECB would kick off another wave on monetary easing. US & China extend olive branches before trade talks. Euro at .1012 as focus on how far ECB will ease. Gold 96, Bitcoin k. pic.twitter.com/Lf1y2M8CDk
— Holger Zschaepitz (@Schuldensuehner) September 12, 2019
Asian and European markets rejoiced on the ECB and trade resolve prospects. CSI 300 of Shanghai- and Shenzhen-listed stocks rose by 1.1 percent, while Japan’s Topic closed 0.7 percent higher. Europe’s benchmark Stoxx 600 rose by a minor 0.03 percent, while FTSE 100 of London advanced 0.3 percent. The S&P 500 Futures rose after tariff delay.
Meanwhile, safe-haven assets appeared cautious. Gold and the Japanese Yen rebounded to the downside after Trump’s tweets. While the precious metal was up 0.5 percent, yen looked stiff.
[Note: Gold has jumped above the ,500 mark shortly after ECB’s decision to cut rates and restart economic easing.]
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Bitcoin Extend Gains as US-China Tariffs Take its Toll
Bitcoin posted modest gains in its September debut as the US introduced additional tariffs of 15 percent on 2 billion of Chinese goods.
The benchmark cryptocurrency added 0.20 percent to trade at ,800 in early Monday morning, bringing its local net rebound up by as much as 5.8 percent – as measured from Friday’s low of ,321.73. The first signs of a positive month followed three weeks of depression, wherein the bitcoin erased about ,300 off its spot rate. Long traders called it a technical correction, but short sellers believe the reason for the downside was investors’ lack of interest. They did not treat bitcoin as a safe-haven asset against slowing economic growth.
“Bitcoin has again failed the safe-haven test,” said Peter Schiff, the CEO of Euro Pacific Management. “On Friday, as escalating trade tensions sent global stock markets plunging, investors sought refuge in monetary safe-havens. The Japanese yen, Swiss franc, and especially gold all moved higher. Bitcoin plunged by more than stocks.”
Bitcoin started moving higher in late Sunday session shortly after Argentina announced strict capital controls in an attempt to stabilize its dwindling economy. The cryptocurrency rose from ,615 to ,840 on a 4H timeframe, as noted on San Francisco-based Coinbase exchange. The sentiment flamed across the Monday session, with bitcoin holding majority of its earlier gains, and hinting to extend its weekend gains as US-China tariffs take its toll.
Global stocks start a tad lower to the week as new US-China tariffs add to global doom. China bucking the trend as factory activity unexpectedly expands in Aug, Markit factory PMI (50.4) shows. US mkts closed for Labor Day holiday. Bonds lower w/ US 10y at 1.5%. Bitcoin at .8k. pic.twitter.com/KJrXKaO4t6
— Holger Zschaepitz (@Schuldensuehner) September 2, 2019
Rival Assets Up, Stocks Down
Bitcoin’s rival asset Gold was also trading slightly higher following the European market open. Spot gold was up 0.2 percent to ,522.17 per ounce as of 0920 UTC after falling to its one-week low of ,517.12 in the last session. US Gold Futures were also up by 0.1 percent, trading at ,531 an ounce.
Japanese Yen, another perceived safe-haven asset, chartered into a sideways territory after testing crucial support against the US dollar last Friday.
Hedging assets attracted capital as investors continue to lose confidence about a positive outcome from the ongoing trade conflict. The global stock market suffered on Monday, with MSCI’s All-Country World Index, which tracks equities across 47 countries, down by 0.1 percent.
“Despite the market’s sanguine take, we believe the ultimate outlook for the trade dispute has become harder to predict with confidence,” said Mark Haefele, chief investment officer at UBS Global Wealth Management. “Since trade tensions have become the major driving force for stocks, even greater than monetary policy, we advise against adding significantly to equity exposure – particularly for those who have an adequate strategic allocation.”
What’s Next for Bitcoin
Against what Schiff said, speculators are willing to trust bitcoin as a hedge against liquidity crisis. The assumption finds support in a string of catalysts that might push the cryptocurrency’s value up. That includes Bakkt, an Intercontinental Exchange-backed digital assets platform, which will start offering its daily and monthly physically-settled bitcoin futures – effectively from September 23 this year. Analysts think the launch would bring a flood of Wall Street investors into the cryptocurrency market.
Hashrate keep pouring in, yet another ATH set yesterday.
Bitcoin fundamentals keep strengthening.
Bakkt opening its doors for institutional money in 23 days.
The stage is set.
— hodlonaut
(@hodlonaut) August 31, 2019
Some naysayers think Bakkt is merely attracting more speculation into the bitcoin market – and that a cryptocurrency rally would fizzle upon the futures’ launch.
Think like a criminal
Regarding the #Bakkt news, expect the Crypto market to catch a bid, and run up hard.
Then on the day that #Bakkt actually goes live, there'll be a market selloff!! Again, Wall Street is best for breaking hearts, and stealing souls
— @CryptoChartsJoe (#bullmarketstartes08/19) (@CryptoChartsJoe) August 16, 2019
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Bitcoin Rises Minutes After China Announces Additional Tariffs on US
Bitcoin began an impressive price surge minutes after China announced that it would slap additional tariffs on US goods.
Beijing said late Friday that it would increase taxes on billion worth of US imports of between 5 and 10 percent. That progressed its already worsening trade dispute with Washington which last week had announced a similar tariff on 0 billion of Chinese imports.
![bitcoin, US-China trade war](https://www.newsbtc.com/wp-content/uploads/2019/08/bitcoin-price-23082019-2-860x550.png)
Bitcoin spikes after China announced additional tariffs on US goods | Image credits: TradingView.com
The BTC/USD instrument spiked by 5, or 3.52 percent, to establish a local high towards ,449.52 on San Francisco-based Coinbase exchange. The move uphill appeared shortly after China’s announcement, validating bitcoin’s growing correlation with the global trade dispute. Investors/speculators evidently went bullish on the cryptocurrency’s near-term price prospects, a move similar to many ever since the US-China trade war picked momentum.
Renminbi Down
Sentiments towards the Chinese Renminbi dwindled on Friday, with analyst predicting the national currency would fall further due to the tariff announcement. As of 10:00 UTC, one dollar bought 7.079 yuan, the unit of the renminbi. Earlier, the price had dropped towards 7,099, a level never-touched-before since the financial crisis 11 years ago.
Currencies across the globe crashing to all-time, or multi-decade lows, and no one talking about. Gee, I wonder if #Bitcoin will succeed. See the Yuan, Rupee, Peso (Mexican and Argentine), Euro, Rand, Brazilian Real, etc.
— Andy Hoffman (CryptoGoldCentral.com) (@Andy_Hoffman_CG) August 22, 2019
The People’s Bank of China allowed the renminbi to go down below 7 a dollar in early August, sparking a further escalation in their dispute with the US. The move prompted the White House to call China a “currency manipulator.”
Meanwhile, bitcoin encashed the most as two superpowers remained engaged in a tit-for-tat strategy. The cryptocurrency surged 5 percent on the day PBoC forced the renminbi lower. It is now eyeing to repeat the price action as investors look for safe-haven assets against the impending economic meltdown.
China raises tariffs on US
₿ Bitcoin Goes upUS raises tariffs on China
₿ Bitcoin Goes upChina raises tariffs on US
₿ Bitcoin Goes upUS raises tariffs on China
₿ Bitcoin Goes up— Jacob Canfield (@JacobCanfield) August 23, 2019
Fed Easing Priced In
The bitcoin price rise came as traders also awaited further pointers from the US Federal Reserve Chairman Jerome Powell, as he spoke at annual central bankers meeting at Jackson Hole, Wyoming, today. He gave no new indication about cutting interest rate any further, as had demanded by Trump in his critical tweets on the Fed.
“We will act as appropriate to sustain the expansion,” Powell said.
A rate cut in late July had assisted bitcoin in growing its market capitalization. Speculators believe cutting interest rate further would increase the cash-liquidity among investors, which would then be able to route more capital into the bitcoin market.
“Economy slowing down only means one thing — cutting rates and printing money,” said Anthony Pompliano of Morgan Creek Digital Assets. “They don’t realize that they’re giving Bitcoin the rocket fuel it was built to consume. Long Bitcoin, Short the Bankers.”
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Could U.S. Tariffs Be Behind Bitcoin’s Rally Towards $11,000?
Bitcoin has been able to extend the upwards momentum it has incurred over the past several days and is now nearing the key resistance level of ,000, which was the price at which BTC faced a swift rejection that sent the crypto reeling down to lows of ,100.
Now, some are theorizing that the United States’ latest set of tariffs on China may have sparked this BTC rally, as most “safe haven assets” are currently surging.
Bitcoin Climbs Towards ,000 as Bears and Bulls Battle
At the time of writing, Bitcoin is trading up nearly 2% at its current price of ,770, which is up significantly from its daily lows of ,400.
This price surge today marks an extension of the upwards momentum that Bitcoin first incurred last weekend when its price sharply dipped to ,100 before quickly recovering and starting an uptrend that has sent the crypto back to its current price levels.
Importantly, a couple of weeks ago BTC sharply rose to highs of ,000 before facing a significant sell-off that sparked a week-long downtrend. It remains unclear as to whether or not this price level will once again have insurmountable selling pressure.
Josh Rager, a popular cryptocurrency analyst, spoke about Bitcoin’s near-term resistance in a recent tweet, explaining that ,800 is a short-term resistance level.
“$BTC Weekly Chart: Currently, Bitcoin price is testing the resistance level ,833: Price must not only break but want to see the price above on the weekly close in less than 48 hours. Support needs to hold above previous resistance at ,590. Close above ,833 is bullish,” he said.
$BTC Weekly Chart
Currently, Bitcoin price is testing the resistance level ,833
Price must not only break but want to see the price above on the weekly close in less than 48 hours
Support needs to hold above previous resistance at ,590
Close above ,833 is bullish pic.twitter.com/sRmtp02LaA
— Josh Rager
(@Josh_Rager) August 3, 2019
Did U.S. Tariffs Spark the Recent Rally?
This past week it was announced that the US will be placing additional tariffs on Chinese imports, which instantly led to a sell off in the global equity markets.
Importantly, many safe haven assets have surged in the time since these tariffs were announced, which may strengthen the Bitcoin “Gold 2.0” narrative.
“$BTC has rallied together with multiple safe-haven assets after Trump’s latest tariff storm. Will the trade war continue to be a catalyst for #Bitcoin’s price growth?” Binance Research explained in a recent tweet while referencing the below graph.
$BTC has rallied
together with multiple safe-haven assets after Trump's latest tariff storm.
Will the trade war continue to be a catalyst for #Bitcoin's price growth?
pic.twitter.com/Ghf0eqvazF
— Binance Research (@BinanceResearch) August 2, 2019
As the global economy continues to face instability, it is likely that analysts will gain better insight into whether or not this instability will prove to be a positive thing for BTC.
Featured image from Shutterstock.
The post Could U.S. Tariffs Be Behind Bitcoin’s Rally Towards ,000? appeared first on NewsBTC.
Bitcoin Gains as Trump Threatens $300B Tariffs on Chinese Goods
The bitcoin price soared higher on Friday after US President Donald Trump announced another 0 billion tariffs on Chinese goods.
The world’s largest cryptocurrency touched the ,527-high ahead of the European market open, posting up to 2.47 percent intraday gains. The upside action brought its weekly profit closer to 11 percent, accompanied by a decent rise in volume on spot exchanges. The move further influenced the rest of the cryptocurrency market to follow suit, with the combined altcoin market capitalization surging from .149 billion on July 29 to as high as .697 billion today.
Meanwhile, global markets felt the pressure of Trump’s announcement. The Asian equity markets posted more than 1.4 percent losses, while their European counterparts opened 1 percent lower on Friday morning. US Futures, at the time of this writing, were also erasing their Fed rate cut gains, indicating a weaker session for the Dow Jones Index, Nasdaq Composite Index, and S&P 500 Index this Friday.
The US Dollar Index also felt the heat of an escalating US-China trade war as it gave up its overnight gains to Trump’s tweets. It fell 0.14 percent to 98.23.
Our representatives have just returned from China where they had constructive talks having to do with a future Trade Deal. We thought we had a deal with China three months ago, but sadly, China decided to re-negotiate the deal prior to signing. More recently, China agreed to…
— Donald J. Trump (@realDonaldTrump) August 1, 2019
For Haven Sake
Analysts have been digging a possible correlation between the ongoing US-China trade dispute and bitcoin price. They believe the rising tensions between the two superpowers weaken their national currencies, especially the Chinese Yuan, which remains under a strict capital control imposed by the Chinese government.
Between May 5 – the day Trump announced that he would increase tariffs on Chinese imports – and June 26, the bitcoin price surged by more than 142 percent. The period also saw yuan tumbling to its six-month low after Beijing counterattacked Trump’s tariffs with its own.
The fundamentals are very same even today. Soon after Trump’s tweet yesterday, yuan took a beating and fell up to 0.83 percent against the dollar.
![yuan, bitcoin](https://www.newsbtc.com/wp-content/uploads/2019/08/yuan-price-02082019-1-860x550.png)
Chinese Yuan Slips against US Dollar following Trump’s Tariff Threat | Image Credits: TradingView.com, ICE
The correlation is not entirely accurate, believes Garrick Hileman, head of research at Blockchain.com. The London School of Economics researcher told SCMP in May that bitcoin price moves uniquely alongside yuan concerns.
“We can’t be 100 percent certain that bitcoin’s recent price increase is being driven by concerns over the trade tensions and declines in the RMB’s exchange rate as correlation does not necessarily equal causation,” Hileman said.
But Brian Kelly of CNBC believes the correlation cannot be a coincidence. He tweeted shortly after Trump’s tariff threat an image showing very correlated price movements of yuan and bitcoin.
“Offshore Yuan and bitcoin moving together after additional tariff announcement. [It] does not appear to be [a] coincidence,” he stated.
Offshore Yuan and #bitcoin moving together after additional tariff announcement…does not appear to be coincidence pic.twitter.com/l757DgYQ5B
— Brian Kelly (@BKBrianKelly) August 1, 2019
It is possible, if not entirely correct, that investors in China hedge into bitcoin as if its a haven asset. That could also be due to the cryptocurrency’s growing popularity as “digital gold.”
The post Bitcoin Gains as Trump Threatens 0B Tariffs on Chinese Goods appeared first on NewsBTC.
Bitcoin Awaits Big Bull Run as China Hits U.S. Back with New Tariffs
The bitcoin price surged 10 percent in the 24 hours and the sentiments are switching back to the buying side as tensions in the global markets escalate.
The Chinese Finance Ministry announced Monday that it plans to raise tariffs on billion worth of US imports. Beijing said they would increase duty tax on U.S. goods from 10 percent to 25 percent as it battled a similar action from Washington in the ongoing US-China trade war.
I say openly to President Xi & all of my many friends in China that China will be hurt very badly if you don’t make a deal because companies will be forced to leave China for other countries. Too expensive to buy in China. You had a great deal, almost completed, & you backed out!
— Donald J. Trump (@realDonaldTrump) May 13, 2019
The move increased global investors’ risk exposure in the market, with almost all the significant futures’ indexes posting losses. The S&P 500 Futures, for instance, was down 1.98 percent to 2,829 points as of 1325 UTC. At the same time, Dow Futures dropped to 25,428.5 points after falling 2.06 percent, while Nasdaq futures plunged 2.45 percent towards 7,431 points.
Holger Zschaepitz, the financial editor at Germany-based Welt news service, believed the growing positive correlation between the trade war and the global stock market would benefit safe haven assets like gold and bitcoin. He stated ahead of China’s tariff increase:
“Global markets start in Risk-Off mode to the week. Stocks fell along with Yuan & Treasury yields amid US-China trade war escalation. Investors awaited details on possible China counter-measures. US 10 year yields drop to 2.44%, Yen and Bitcoin strengthen on haven bids.”
Bitcoin Surge Continues
The bitcoin price today appreciated up to 10 percent against the US dollar since the market open. The cryptocurrency settled a lower high towards ,000, suggesting that it may still be inside a bearish correction phase from its 2019 peak. However, Alex Krüger, a prominent cryptocurrency analyst, said the bitcoin price is looking to extend its gains in the long run.
“Sanity reigned in over BTC overnight, correcting 11% lower,” he stated. “Yesterday’s move above 00 had started making many, including me, doubt that a strong correction would ensue anytime soon.”
Krüger added that there were no hints of bitcoin buying at the retail level, arguing that the size of the asset’s appreciation is too big to back by small investors. Nevertheless, the analyst credited positive market fundamentals surrounding Fidelity Investments, TL Ameritrade, and E*Trade Financial. The US companies either announced or hinted that they would launch bitcoin trading services.
What drove $BTC up this week?
A handful of large players, that started buying in waves. Systematic buying.
Clues to reach that conclusion can be found in volume, price action, funding, and futures basis and term structure. May expand on this later.
Not retail driven.
— Alex Krüger (@krugermacro) May 12, 2019
Gold, Yen Up Too
The bitcoin price recovery Monday mirrored market biases in the haven assets, Gold and the Japanese Yen. The XAU/USD spot rate today rose up to 1.08 percent to 1299.738, while the JPY/USD surged as high as 0.64 percent to settle an intraday high towards 0.009171.
“The overall reaction by currencies has been limited, however, as there are also factors that support hopes for an eventual settlement, such as the possibility of the US and China presidents meeting at the G20,” said Masafumi Yamamoto, chief forex strategist at Tokyo-based Mizuho Securities.
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Trump’s Trade Tariffs on Chinese Imports to Hit Mining Manufacturers Hard
President Trump’s trade tariffs will likely cause a major dint in the profitability of Chinese companies producing cryptocurrency mining hardware.
Of the three mining giants based in China, Beijing’s infamous Bitmain is expected to be the worst hit since they rely most heavily on overseas sales.
As Trump’s Trade War Heats Up, US to Charge Chinese Mining Manufacturers 27.6% Tax
Three of the planet’s largest producers of mining hardware are expected to be negatively impacted by the trade tariffs introduced by President Trump in late August.
Bitmain, Canaan, and Ebang International will be forced to pay a whopping 27.6 percent on all units sold in the U.S. This is because the U.S. Trade Representative categorised mining hardware as “electrical machinery apparatus” in June.
Ben Gagnon, the co-founder of Bitcoin mining equipment development firm LuTech, told the South China Morning Post about how the tariffs would likely impact the largely Chinese led industry:
“All manufacturers of mining rigs based in China will likely be affected by the tariff code change and, in turn, captured by the U.S. trade tariff.”
Of the industry’s three largest companies, Beijing-based Bitmain is expected to be worst hit by the trade tariffs. This is because the firm’s overseas sales made up a massive 51 percent of its total revenue in the years 2016 and 2017. These figures come courtesy of Bitmain’s own initial public offering prospectus.
Meanwhile, Canaan and Ebang International do not rely as heavily on exports with their own overseas sales contributing just 8.5 percent and 3.8 percent respectively during last year.
However, the precise percentage of sales destined for the U.S. from any of the three companies is unclear.
One of Sanford C. Bernstein’s senior analysts, Mark Li, states that the U.S. trade tariffs against China will make the units created by Bitmain, Ebang International, and Canaan much less attractive for cryptocurrency miners operating in the U.S. This would allow products from other countries to erode the influence China currently exerts on the mining industry.
For Bitmain, the Chinese trade tariff is not the only factor threatening to dethrone them as the planet’s largest cryptocurrency mining hardware manufacturer.
Their dominance in the race to create the most technologically advanced chips is quickly dwindling with offerings from the likes of GMO and Canaan being more efficient and faster than Bitmain’s flagship model.
Additionally, the Chinese cryptocurrency mining giant is also thought to be holding huge reserves of Bitcoin Cash on their books. The figure is thought to be so large that there is no practical way for the company to offload them without crashing the market.
Li summarised that Bitmain’s situation is looking increasingly bleak. So much so that the company probably have bigger issues to worry about than Trump’s harsh trade tariffs:
“The U.S. tariff is probably not something on the top of the management’s minds now.”
Featured image from Shutterstock.
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