Bitcoin shoots up after Trump tweets about China tariffs. Surprised?
The King of cryptocurrencies has a long history of breaking up and down and now up again. The price of bitcoin has shot up following a series of tweets by Donald Trump which further deepened trade tensions between the US and China.
According to cryptocurrency analysts, it was the first time bitcoin’s price had reacted in “real-time” to a breaking news story about the trade war.
The price change could be a sign that investors are viewing bitcoin as an alternative safe haven asset during times of economic turmoil and geopolitical uncertainty.
"Escalating tensions between the two world's largest economies will see investors pile in to decentralised, non-sovereign, secure currencies, such as bitcoin, to protect them from the turmoil taking place in traditional markets," Nigel Green, chief executive of financial consultancy firm deVere Group, told The Independent.
Bitcoin has a long and notorious history of high price volatility:
2009: Satoshi Nakamoto creates the first bitcoin block
It came less than a year after the pseudonymous creator Satoshi Nakamoto detailed the cryptocurrency in a paper titled 'Bitcoin: A peer-to-Peer Electronic Cash System'
22 May, 2010: Bitcoin is used as a currency for the first time
The first ever real-world bitcoin transaction took place. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins – the equivalent of $90 million at today's prices
29 October, 2013: The first bitcoin ATM appears The first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada.
February 2014: The fall of MtGox
The world's biggest bitcoin exchange, MtGox, filed for bankruptcy in February 2014 after losing almost 750,000 of its customers bitcoins. At the time, this was around 7 per cent of all bitcoins and the market inevitably crashed
1 August, 2017: Bitcoin's big split
Bitcoin's big split An unresolvable dispute within the bitcoin community saw the network split. The fork of bitcoin's underlying blockchain technology spawned a new cryptocurrency: Bitcoin cash
2017: Bitcoin's price sky rockets
Towards the end of 2017, the price of bitcoin surged to almost $20,000. This represented a 1,300 per cent increase from its price at the start of the year
What is the future of Bitcoin? Is it possible for the king of cryptocurrencies to hit $1 million by 2020? No one knows. One thing is for sure though: You can take advantage of Bitcoin price actions right now and trade it via CFDs on TradeApp.