Bitcoin Price May Skyrocket If China Starts Selling US Treasuries: Forbes

  • Yuri Molchan
    📰 News

    As the US-China trade war continues, Bitcoin price may soar even higher provided that China gets rid of US Treasury bonds


Bitcoin Price May Skyrocket If China Starts Selling US Treasuries: Forbes
Contents

The US president Trump continues the trade war with China and chances are high that it may go on to the US bond market field, writes Forbes.

Should in this case China begin to sell off its US Treasuries (worth $1,1 trl), the empire then would have to choose a different target for investing this money.

News sanctions from the US are coming, China prepares to strike back

Now that the US prepares to impose new sanctions on the nation behind the Great Wall of China, Bitcoin may well become a new gold, literarily, assumes Forbes in a recent article.

Since the trade war began, many Chinese investors already started hedging their risks by entering crypto. Now, whether this large scale Bitcoin rally will go on and on will depend on whether Chinese government will decide to sell the US Treasury bonds back to the issuer.

For a very long time, US Treasury bonds have performed the role of the store of value when uncertainties rose between major countries, such as trade wars or other geopolitical issues.

For this reason, Treasuries have been gaining value recently, along with Bitcoin.

As mentioned above, China keeps US Treasuries worth of over $1 trl, which is part of tis USD management policy. However, should the trade war get to a new level, the Chinese government may start selling them.

This could make surge both Treasuries and Bitcoin price. The founder of Yewno agency, Ruggero Gramatica, believes:

Bitcoin as a store of value could benefit from US Treasuries sell-off.”

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Will Beijing invest in Bitcoin?

Gramatica says that once (assuming it does happen) China sells Treasuries back to the US, it will be left with over a trillion USD on their hands and will have to choose Treasuries of another country to buy.

The second best after US Treasuries are the bonds of Japan or Germany. Those are much less profitable, though.

However, Bitcoin is growing as a recognized store of value among global institutional investors at the moment. There is a possibility, believes Gramatica, but a very weak one, that the Chinese government decides to invest in BTC.

That seems highly unlikely, however, due to the current Chinese crypto ban and an overall negative attitude of Chinese authorities to cryptocurrencies.

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About the author

Yuri has worked in crypto since 2017. A translator, quickly became a crypto enthusiast. He has worked for several Telegram channels covering cryptocurrencies. Currently is a news writer, covering crypto and blockchain-related topics.

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Wall Street Is Extremely Bullish on Facebook’s Cryptocurrency  


Wall Street Is Extremely Bullish on Facebook’s Cryptocurrency  
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Social media juggernaut Facebook is about to launch its Libra cryptocurrency, which, as expected, is currently on everyone’s lips.

According to a recent CNBC report, financial analysts appear to be on the same page when it comes to bullish Facebook predictions.   

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The talk of the town

There is a schism in the cryptocurrency community concerning Facebook’s foray into crypto. While some think that Facebook undermines Satoshi Nakamoto’s vision of a decentralized cryptocurrency, prominent influencers, including Mike Novogratz and Anthony Pompliano, look at the bright side.

On the flip side, major Wall Street players seem to agree that Facebook’s stock will see plenty of love once the company unveils its much-talked-about crypto project.

SunTrust, MoffettNathanson, Bank of America stick with a “buy” rating on Facebook.

MoffettNathanson goes as far as claiming that the Mark Zuckerberg-led company aims to become the biggest e-commerce platform on the planet.

We believe a Facebook cryptocurrency-based payments system could be especially useful in countries with high inflation/unstable banking systems and for cross-country remittances. So, Facebook’s commerce ambitions do not appear to be limited to developed markets. Rather, Facebook has its eyes set on becoming the world’s leading ecommerce platform as well.”

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Not the right company?  

As reported by U.Today, Facebook joined forces with VISA, Paypal, and a slew of other startups that became part of the Libra consortium for a whopping $10 mln fee.

The company itself remains radio silent about its crypto ambitions, but there have been countless reports on that topic since December.

We are about to see a fiat-pegged stablecoin that will be integrated into Facebook, Instagram, and WhatsApp.

After being plagued with huge data scandals, Facebook will probably have a hard time convincing regulators to green-light its new cryptocurrency. Hence, it might be a promising idea, but not the right company to pull it off.

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About the author

Alex Dovbnya (aka AlexMorris) covers all things crypto — from major projects, which are fighting tooth and nail to gain the upper hand in the burgeoning industry, to the latest regulatory trends around the world. When he happens to take a break from crypto, Alex delves into cognitive linguistics (metaphors can be fun too!).

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