Taiwan vs. China: how does the crisis affect the price of bitcoin?
Taiwan and China are currently in a standoff over Taiwan's sovereignty, which affects the price of bitcoin. The situation escalated after the Speaker of the US House of Representatives Nancy Pelosi visited the Asian country.
When Pelosi's plane landed successfully, Navy planes and ships moved into the area. Tensions were rising, the price of bitcoin and other cryptocurrencies reflected the drama in their prices.
Bitcoin and altcoin markets belong to the category of risky assets. Thus, they were negatively affected by tensions between China and Taiwan.
Ongoing tensions between Taiwan and China peaked on Wednesday, and U.S. and Chinese Navy ships were mobilized. The Japanese Air Force was also involved in the process. This tension caused the bitcoin price to drop to $22,600 during the day.
The bitcoin and altcoin markets, which were falling until Pelosi's plane landed, then managed to climb above $23,000.
Although the leading cryptocurrency Bitcoin is described as digital gold, any increase in regional tensions and military threats negatively affects the price of BTC.
All this time, the price of gold has been rising, and bitcoin and altcoins have suffered losses. Experts say that in the event of an escalation of tensions between Taiwan and China, the trend towards gold, a traditional safe asset, will increase. In addition, if the perception of risk increases, there may be an exit from the cryptocurrency money markets.
Given the historical data, it is safe to predict that the BTC and altcoin markets will experience a downturn in the event of a war between China and Taiwan.
After the conflict between Russia and Ukraine, Bitcoin almost collapsed. Gold prices, on the other hand, have gained upward momentum.
The escalation of tensions between China and Taiwan is not limited to the region closest to Taiwan. Other countries, including the USA, Japan and the EU, will also be involved in the conflict.
This puts the macroeconomic outlook in a precarious position and leads to a decrease in risk appetite.
https://coin-signal.com/cryptonews/taiwan-vs-china-how-does-the-crisis-affect-the-price-of-bitcoin/
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