Bitcoin’s major sister futures in the United States stock market continue to steadily rise even prior to Friday’s opening bell, and seem to be responding to news concerning the ongoing trade war, while Bitcoin still remains ‘unconcerned’ and ‘unyielding’.
The Trade War Wielding Influence
The United States stock market rocketed to a bullish rise on Thursday following various reports milling the internet that the US was ready to lift up some or all of the tariffs earlier placed on imports coming from China. The news sent Dow futures leading its pack by 250 points only to retract some hours later after reports surfaced that the tariffs would remain.
The trade war continues to impact the stock market, and speculation concerning when the trade war would be over has not ended. The rejoining reports concerning shelving of earlier plans placed US trade representative Robert Lighthizer under scrutiny, who is said to have opposed Mnuchin’s recommendation. Lightizer is said to ease off on the stance made by the United States might suggest weakness for the country, and would only yield unsatisfactory results: China would definitely find it convenient than making a new deal with the US. However, a spokesman from the Treasury moved to deny those reports. He said concerning the reports:
“Neither Secretary Mnuchin nor Ambassador Lighthizer has made any recommendations to anyone with respect to tariffs or other parts of the negotiation with China. This is an ongoing process with the Chinese that is nowhere near completion.”
The three futures, Dow Jones Industrial Average futures, S&P 500, and Nasdaq made significant increases on Thursday and closed the day better than antecedent days. Although the increases retracted somewhat hours later, Dow futures made the highest increase, gaining 157 points to surge up by 0.65 percent. Nasdaq followed with a 0.48 percent rise, and S&P showed the least response with 0.45 percent: All reported records taken by 8:21 am European Time.
Many market analysts have reported the rise as a positive indicator that the stock market was only waiting for an important response, especially concerning the trade war.
Bitcoin and its colleagues such as Ripple (XRP) or Ethereum (ETH) are yet to respond in any way to the recent reports. In fact, there have been little or no correlation between the floating trade news and the cryptocurrency market. Mati Greenspan has described, a Senior Market Analyst from eToro has described cryptocurrencies as showing increased ‘apathy’ towards financial markets. This is pushing the suggestion that Bitcoin (BTC) could become a possible economic hedge during a period of recession.
“Since the beginning of 2019,” he commented, “the short-term correlations between bitcoin and gold, the US Dollar, and the stock markets have all moved to near zero. They just DGAF.”