There are crucial days for Bitcoin And the stock markets are imminent. The courses are at a turning point, and if Donald Trump continues his trade war in this form, this could change the world sustainably. In addition to the shocks that Trump triggers with its import tariffs, the focus this week is also the focus of inflation in the United States.
Thursday decisive for Bitcoin and stocks
The United States’ consumer price index (CPI) will be published next Thursday. This date promises to be particularly exciting, since it is now crucial for the market that the downward trend of inflation continues.
Due to the trade war, concerns about economic growth in the United States have increased significantly. If inflation is now increasing unexpectedly, a scenario of stagflation threatens. If, on the other hand, inflation decreases, the US central bank receives additional scope for interest rate cuts, which could provide the markets some relief.
The stock markets are also increasingly moving to a critical point – especially due to the developments around China and the United States in the trade conflict of Donald Trump.
Weak Chinese Yuan is burdened by Bitcoin and S&P 500
Donald Trump recently announced an import customs of 104 % on products from China. This brings China to an almost unsolvable location, since the country is dependent on very specific conditions in order to keep the Yuan exchange rate stable.
China tries to control its currency by maintaining the balance in the so -called “impossible trinity”.
The theory of “impossible trinity” states that a country cannot have free exchange course design, free capital traffic and an independent monetary policy at the same time. In order to be able to control interest policy, China therefore limits capital flows and thus sacrifices financial freedom.
With the trade war, however, China is now facing a force that could be too strong for the country even for the country – which is increasingly unsettling the markets. While the Chinese Yuan rapidly loses value, the S&P 500 – and even Bitcoin device is under pressure.
We are slowly approaching a decision point. If it continues in this direction, a gloomy economic time could be imminent to the world. However, if there is a turn soon, however, no irreversible crisis may have occurred.