The US and China tariff tensions continue. As the two countries announce their moves one after another, Bitcoin and altcoins have been the assets that have been hit the hardest by this war.
BTC and the market surged yesterday after Donald Trump announced the suspension of tariffs for most countries.
However, Singapore-based trading firm QCP Capital has warned about the recent recovery in Bitcoin and cryptocurrency prices.
QCP analysts argued that the retaliatory race between China and the US could turn into a classic bull trap.
QCP stated that this is not the time to relax, it is time to prepare for China’s next move, and that the rise in BTC and altcoins could be a bull trap.
“With China being targeted so openly, market participants are preparing for Beijing’s countermove.
If retaliation comes strongly, the euphoric rally could quickly turn into a classic bull trap.”
“The start of the devaluation of China’s currency, the Yuan, is not just an economic signal, it is a trigger,” said Sina, co-founder of asset management firm 21st Capital, while warning of a QCP bull trap.
“Historically, when the yuan weakens, capital doesn’t stay put. It flees. Some of it flows into gold, some into foreign assets, and a meaningful portion goes into Bitcoin.”
*This is not investment advice.
