The past few weeks have been a rollercoaster ride for China and the stock market, and Bitcoin market. We have noticed so far that one Tweet from U.S. President Donald Trump has enough power to make the markets crash hard or rise quickly.
We noticed this trend when Donald Trump Tweeted about how the government is planning to impose an additional 10% tariff on the remaining goods that were coming from China to the U.S. These few words from the President left the markets shocked and in crisis.
Trump decided to impose this tariff on China from September 1st. This was announced in a Tweet, and it left the whole world shocked at the way things were happening. This tweet didn’t only affect China and trades with other countries, but it also affected the stock market and the Bitcoin price.
The stock markets started well on August 1st with a gain of points in Dow and S&P 500 but later in the afternoon, after this Tweet, things changed entirely for the stock market. Dow reduced by 316 points, and other indices followed this move and lost major profits in the market. The market closed with Dow losing 281 points, S&P 500 went down by 27 points, and the NASDAQ dropped 27 points.
On the other hand, oil prices went down as well with this Tweet. The market was worried for the long term demand for oils, and this lead to the largest one day fall in the markets in the past 4 years. Meantime, U.S. Treasury bond yields fell across the board, as a flight to safe-haven assets occurred, and the medium-term rates fell a bit more than long-term rates.
But even during the time of crisis, one market that witnessed a rise in its price was Bitcoin. Just after the Tweet, we saw a rise in the price of Bitcoin, which increased over the next 5 days as the tension between the countries heated up. By the end of August 5th, a 9% gain was noticed in Bitcoin price, and it closed the day at an attractive price of $11,860.
Over the next few days, we saw drastic changes in the market as the stock market fell further down during the U.S.-China trade war and Yuan fell by 7% to an all-time low in the past 11 years. This explained that during a trade war, people took the turn towards moving to cryptocurrencies for their trading purposes.
This showed a trend that every time the stock market goes down; people change there investment and trading interests towards Bitcoin. But these trends change very often, and we faced a similar situation recently. Again this change was brought by Tweets from President Donald Trump.
In a series of Tweets recently, Donald Trump gave the markets a ray of hope and positivity as he tweeted about how they are doing well with China in terms of trading. He further added that they have decided to talk to the government and discuss the policies on trades. This positive outlook helped the market to rise, but Bitcoin saw a slight decrease in the price in an already bearish week.
Even the concerns of an upcoming global recession were also turned down by people as they explained that the markets are doing good and even better times are coming people’s way. These Tweets can be considered as a good sign for the stock markets and oil markets but this might lead to a further decline in an already bearish Bitcoin market.