The US-China trade war may eventually spread into the US bond market, with China selling-off US Treasuries. And that could send Bitcoin, Ethereum, XRP, and Litecoin to new highs. As the US-China trade war is shifting from tariffs to technology, Bitcoin is turning into the new gold. The digital currency has gained 132.69% YTD since the beginning of the year. Other major currencies have followed suit. Meanwhile, gold has been almost flat.
China is holding huge number of US Treasuries and in case the country will soon decide to use this as a strategy to force USA to stop the pressure on China the result can be catastrophic not just for USA actually but can for the global economy. As they say, when USA catches a cold the world sneezes. Though it must cleared that this is just a speculation as China will not decide on this matter like lightning as they understood well that USA remains one of its biggest market (if not anymore the biggest) and killing this market can have spiral effect on its economy for sure. China can in fact be in a damn-if-you-do-and-don't situation. And of course, if there will be chaos in the international market, we can expect bitcoin as the new gold to play the safe haven role.
