Nigel Green Has High Hopes for the Father of Crypto
For the most part, the trade war is not having serious effects on average consumers in either country, but it is affecting the general markets. Stock prices in the U.S., for example, have been down for the past two weeks, and President Trump has shown a strong willingness to continue what he believes is right by instilling tariffs on another $300 billion-worth of items set to take effect in early September.
Thus, assets like bitcoin are now being viewed as “safe havens.” Fiat tends to be vulnerable during economic scrutiny, and China’s national currency, the yuan, has already devalued somewhat since the start of the trade conflict. At press time, it has fallen under seven to the U.S. dollar, and is trading at its lowest position in roughly ten years.
Bitcoin, on the other hand, has been experiencing solid gains as of late, shooting well past the $11,000 mark about a week-and-a-half ago. Currently, the asset is trading for just shy of $11,400.
This is not a coincidence. It reveals that consensus is growing that bitcoin is becoming a flight-to-safety asset during times of market uncertainty. Bitcoin is currently realizing its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe asset, but bitcoin, which shares its key characteristics of being a store of value and scarcity, could potentially dethrone gold in the future as the world becomes increasingly digitalized.
Recently, President Trump took the liberty of labeling China a “currency manipulator,” which caused the yuan to fall even further. Thus, investors are likely to continue their stockpiling of decentralized assets like bitcoin and really up the ante regarding how much they’re purchasing. With the threat of the trade war becoming ever more present, those seeking refuge are doing so in a more panic-stricken state, and bitcoin trades and purchases are likely to increase tenfold over the coming weeks.
Price Spikes Could Occur Very Soon
The legitimate risks posed by the continuing trade dispute, China’s currency devaluation and other geopolitical issues, such as Brexit and its far-reaching associated challenges, will lead an increasing number of institutional and retail investors to diversify their portfolios and hedge against those risks by investing in crypto assets. This will drive the price of bitcoin and other cryptocurrencies higher. Under the current circumstances, I believe the bitcoin price could hit $15,000 within weeks.
Green isn’t the only analyst suggesting higher marks for bitcoin. Venture capitalist Tim Draper believes the currency could spike to as much as $250,000 per unit within the next three years, though he recently pushed this prediction back a few months.