US President Donald Trump tweeted today that the US is “doing very well with China” in reference to their trade talks. The tweet came several weeks after the imposition of yet more tariffs which caused traditional markets to plunge. Despite his reassurances, the overall market conditions are still far from positive. Amid this economic uncertainty, Bitcoin remains relatively stable above $10,000, further showcasing its negative correlation with traditional markets.
Investors Uncertain Despite Trump’s Reassurances
Trump tweeted the following:
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
The tweet came a few short weeks after Trump slammed yet another 10% tariffs 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 are down almost 1 percent on the day, highlighting uncertainty among traditional investors.
Pressure on All Fronts
It’s not just the US markets that are feeling the pressure of growing international trade tensions. Today, the UK’s Prime Minister, Boris Johnson, prompted the Queen to suspend the country’s parliament in a move that many believe will produce a no-deal on the matter of Brexit.
GBP/EUR. Source: TradingView
Bitcoin Remains Relatively Stable
Amid the global economic uncertainty, Bitcoin remains somewhat stable. It has been trading between $10,150 and $10,500 for the past seven days. As a matter of fact, Bitcoin has increased by around 1.5% in the past week.
In addition, Bitcoin has seen its dominance rate increase slightly over the past seven days to 69%.
As CryptoPotato has reported, $10,000 is a critical price level because it is a proven historical support level. Should the price drop below it, we can expect a sizable move to the downside.