Bitcoin: the lifeguard in the event of a trade war

The  interest in criptomonedas has grown considerably in recent weeks. While halving has been a sizable factor in the rally in crypto investments , geopolitical tensions are once again at the center of the scene. World leaders, notably Donald Trump, want the Xi Jinping government to be investigated into the origins of COVID-19, and the investment world sees the crypto ecosystem as a good haven for its assets.

The CEO and director of the investment platform Concentrated Leaders Fund, David Sokulsky , highlighted the risks of a possible trade war between the main world economies and its possible effects for the crypto market . In the context of an interview with CNBC, the analyst assured that "a gloomy geopolitical climate" could further slow down world economic growth .

“That is an important risk that is not being valued at this time. As we exceed maximum infection rates, politicians are going to want to blame someone, and the obvious target for that blame is China, "Sokulsky said.

According to the analyst, the potential trade war would be much more serious than last year's , marked by strong tensions and crossings between Trump and Xi Jinping . Back then, the Chinese yuan fell below 7 units per dollar, triggering a massive sale of stocks and other risky assets.

During that tragic week for the Chinese economy , the price of bitcoin increased by 35% . According to analysts, one of the main factors in this jump was the increase in demand by Chinese investors to protect themselves from the devaluation of the yuan.

Currently, with the coronavirus crisis hitting almost all world economies and drowning expectations of considerable world economic growth in the short term. The main central banks have increased the monetary issue , and more and more investors are choosing Bitcoin as a safe haven against macroeconomic and inflation risks .