815 viewsDec 16, 2019, 11:54am Bitcoin 2020: What’s Ahead

Story by: Clem Chambers

It doesn’t take a genius to see that bitcoin ((BTC) is trending down.

The bitcoin price remains all about China and the trade war and as the BTC price has indicated for some time now, the progress of the China/U.S. trade dispute towards settlement.

The so-called phase 1 deal is a de-escalation of the China/U.S. trade war and you do not have to be too cynical to see the road to this stage in the slow but sure declining trend in the bitcoin price.

This trade deal progress is great for stocks but bad news for Chinese demand for secure assets outside of the reach and effect of the trade conflict and the risk of a devaluing yuan.

You can guarantee when the heat goes up at the negotiating table, up goes bitcoin’s price, well before we, if we ever do, hear about it what went on. Likewise all progress towards deals, interim or otherwise, will hit the price of Bitcoin.

A comprehensive China/U.S. deal is a long way off, as far off as last year’s bitcoin lows. So there is still no guessing exactly what will happen next in the trade conflict and hence the short term price of bitcoin.

We can, however, look at the bitcoin chart and imagine it as an index of the trade war and if you buy that as a model we can start to speculate how the trade war may pan out and thereby what will happen next.

Original story: https://www.forbes.com/sites/investor/2019/12/16/bitcoin-2020-whats-ahead/#6e9d42011287

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