Senior economic theorist Max Keiser believes that something bad for global stock markets is good for Bitcoin.
The founder of Heisenberg Capital, a venture capital firm that only works on encryption, turned to bearish stocks, fearing that the stock market would fall 15,000 points collectively. He further envisages that a stock market crash may prompt investors to put money into their safe-haven assets. He said:
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“The stock market shows signs of extreme vulnerability. The potential for the downside is 15,000 compared to the current price. Just wait. Bitcoin is $25,000 and gold is $3,000.”
At the time of the above announcement, the world's top wealth management companies also expressed pessimism about the stock market. UBS Wealth Management advises clients to reduce their risky assets. Canadian investment management company Fiera Capital also said that the global market sentiment was fragile and investors showed safe-haven behavior.
Sino-US trade relations are tense
Keiser, UBS and Fiera have drawn pessimism from the ongoing trade dispute between the United States and China. The two superpowers have recently intensified tensions after implementing “a tariff on their teeth”. On Friday, US President Donald Trump further highlighted this issue, calling on American companies to "start looking for alternatives outside of China." Trump’s statement has caused the US stock market to fall by 2.6% because investors have replaced riskier assets with what they consider to be safe-haven assets, including gold, government bonds, the yen, and to some extent Bitcoin.
But this Monday is very different from last weekend. Trump is currently attending the G-7 summit in France, and he praises China's efforts to restart trade negotiations.
The US stock market subsequently rose, and the Dow Jones Industrial Average rose 169 points to 25,798 points, or 0.8%. The Standard & Poor's 500 Index rose 0.7% and the Nasdaq Composite Index rose 0.9%.
Sino-US trade disputes cannot guarantee a beautiful ending, especially the Trump administration's position is repeated, and the global stock market is in a state of greater instability. But in the near term, things seem to be moving in the right direction. This should mean a happy ending in the stock market, as mentioned above, which may prompt investors to leave Bitcoin.
So far, the benchmark cryptocurrency is only volatile at best. As of press time, according to QKL123 market data, bitcoin price was 10130 US dollars, with a 24-hour drop of 1.96%. At least for now, it’s not enough to be $25,000.