A former Deutsche Bank executive has recently suggested that Bitcoin is a major indicator of underlying geopolitical tensions in the world.
A signal of Chinese trade talks scenes
One of the Forbes July 30 article revealed that a former Deutsche Bank Executive Director and also a Forbes contributor Peter Tchir has urged people to look at the Bitcoin price movements since it can give them a clue of behind the scenes on Chinese trade talks.
Tchir gave his correlation observations between major industry news and Bitcoin price in the article. United States President Donald Trump statement in May concerning trade deal with China, which went sour is one of the claims that was cited in his research.
Bitcoin now hints no alarm in China
For the past few days, the Bitcoin price has considerably correlated with the emerging headlines according to Tchir. In the research, the Analyst observed a drop amid progressing talks and rise amid negative headlines of BTC/USD.
One of his reference in a tweet stated that Trump said new tariffs caused China to lose two million manufacturing jobs and five million other jobs.
However, today’s headlines are not causing the Bitcoin price to rise faster than stocks, Tchir noted. He went on to write that:
“Is that a sign that the Chinese elite know the headlines are more negative than the reality of the situation? It isn’t a clear enough signal, but for now, I think Bitcoin is hinting that there is no alarm in China, which is positive.”
Tchir has stood on the fact that people should not ignore Bitcoin’s value as a “leading indicator into behind the scenes geopolitical tensions” even though other factors that might affect the price of the crypto.
Anthony Pompliano — the co-founder of Morgan Creek Digital Assets — earlier today, described the events surrounding bitcoin as game theory. He specifically told CNBC’s Squawk Box that if one country will choose to take bitcoin in a “very serious way,” it would force others to play catch up and follow suit.