Bitcoin prices surged Monday, extending a months-long rally that brought prices to their highest level this year.
Bloomberg pegged investor’s enthusiasm to a string of news announcements from mainstream companies beginning to use crypto currencies in some form, such as asset manager Fidelity Investments and telecommunications firm AT&T.
I think there’s another reason underlying the recent rally – the U.S.-China trade war. As BitMEX co-founder Arthur Hayes writes in his newsletter, the trade war will put pressure on the value of the Chinese currency, the yuan, to devalue.
China strictly controls the flow of money in and out of the country. Crypto is tailor-made for evading government control. Even though China banned cryptocurrency exchanges, there’s still plenty of other ways for Chinese investors to buy digital currencies as they seek ways to safeguard their wealth.