US President Donald Trump reassured that the economic situation with China is “doing very well.” The tweet came weeks after the imposition of yet another tariff imposition which saw traditional markets plunge into the red. Despite his reassurance, the overall market condition is still far from positive. Amid this economic uncertainty, Bitcoin remains relatively stable above $10,000, showcasing its negative correlation to traditional markets yet again.
Investors Uncertain Despite Trump’s Reassurance
The president of the US, Donald Trump, tweeted today that they are doing very well with China. Moreover, he expressed definitive reassurance that they are doing so after many before him have tried and “failed miserably” to do so.
So interesting to read and see all of the free and interesting advice I am getting on China, from people who have tried to handle it before and failed miserably – In fact, they got taken to the cleaners. We are doing very well with China. This has never happened to them before!
— Donald J. Trump (@realDonaldTrump) August 28, 2019
Now, it’s worth noting that this tweet comes a few short weeks after Trump slammed yet another 10% tariff on $300 billion worth of goods which China exports to the US. Back then, traditional markets tumbled as the S&P 500 lost more than 60 points almost immediately after the news broke out.
Dow Futures. Source: TradingViewAs seen on the chart, Dow Futures are down almost 1 percent on the day, showcasing the uncertainty of traditional investors.
Pressure On All Fronts
It’s not just the US markets that are feeling the pressure of the growing international trade tension. Today, the UK’s Prime Minister, Boris Johnson, prompted the Queen to suspend the country’s parliament in a move that many believe will push a no-deal on the matter of Brexit.
GBP/EUR. Source: TradingView
Bitcoin Remains Relatively Stable
Amid this global economic uncertainty, Bitcoin remains somewhat relatively stable. The price has been trading in the range of $10,150 – $10,500 for the past seven days. As a matter of fact, Bitcoin has increased by around 1.5% during the last week.
In addition, Bitcoin has also seen its dominance index increased slightly over the past seven days as it currently stands at 69% of the entire market cap.
As Cryptopotato reported, $10,000 is a critical level to watch because it has proven to be a proven historical support level. Should the price drop below it, however, we may as well expect a notable move to the downside.
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