Former bank executive says: The world cannot ignore Bitcoin's prominent signs in politics.

According to a former executive of Deutsche Bank, Bitcoin is a leading indicator of hidden geopolitical tensions.

Geopolitics is the study of how individuals, organizations, or groups operate politically based on geographical factors such as spatial distribution. It typically analyzes the economic, social, military, diplomatic, historical, and political aspects based on geographical factors. In this case, we will use the Bitcoin index for analysis.

Peter Tchir, a contributor to Forbes and former managing director at Deutsche Bank, suggested in an article published on 7/30 on Forbes that the price movement of Bitcoin could serve as a potential signal for the background of China trade negotiations.

Will Bitcoin be a leading indicator of what is happening behind the scenes in China trade negotiations?

He offered observations on the correlation between Bitcoin prices and major industry news. Referring to his previous research, he claimed that BTC surged in May due to the perceived fragility of the trade agreement between the U.S. and China as indicated by President Trump.

Peter mentioned that the Bitcoin price often correlates significantly with recent headline news. According to his analysis, the price tends to decline during negotiations and rise on negative news.

However, he cited a recent tweet by Trump stating that China lost 5 million jobs and 2 million manufacturing jobs due to new tariffs.

Yet, the price of Bitcoin does not seem to be slowly rising in today's headline news and is not reacting like stocks. He stated:

Does this indicate that Chinese elites have a more negative "perception" of headline news than the actual situation? While not a clear signal, for now, I believe Bitcoin suggests that China is not sounding any alarms, which is positive for trade negotiations and stocks.

Finally, Peter also acknowledged that there are currently too many factors influencing the price of Bitcoin, but the value of Bitcoin as a "leading indicator of behind-the-scenes geopolitical tensions" should not be ignored.

Further Reading

• The smallest unit of Bitcoin, Satoshi, is about to get its own symbol
• Chinese banks release news: Why is Bitcoin valuable?

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