The founder of Global Macro Investor and Real Vision Group Raoul Pal recently took to Twitter to say that global financial markets and currencies are at a very fragile junction. With the dollar rising at an uncontrollable rate, we could witness all major Asian currencies falling by 20 percent or more. This makes the perfect breeding ground for Bitcoin (BTC) adoption.
The US-China trade war could be fueling this year’s bull run, as it is negatively affecting the Chinese yuan and appears to be positively affecting the price of Bitcoin. Additionally, the television network RT prompted that the trade war between the two economic giants could potentially be leading Chinese investors to abandon the yuan and seek out Bitcoin in anticipation of the yuan falling further.
Although there is a blanket ban for Bitcoin and crypto trading in China, they still have a vibrant OTC market. The OTC market is vibrant, and these venues have found politically acceptable ways to allow buyers and sellers to meet in China. Zhao Dong, arguably the largest OTC trader in China, is one of the main people responsible for the successful $1bn Bitfinex LEO IEO.
Gold and Bitcoin have been showing similar technical indicators. This trend suggests that investors are expecting an impending currency crisis and Bitcoin could become accepted as a new financial system or even currency.