/Bitcoin Clueless as ECB Cuts Rate, and US-China Delay Tariffs

Bitcoin Clueless as ECB Cuts Rate, and US-China Delay Tariffs

Bitcoin erased earlier gains on Thursday as US President Donald Trump said he would delay an increase in tariffs on Chinese goods.

bitcoin, bitcoin newsbitcoin, bitcoin news

Bitcoin price remains in bias-conflict | Image credits: TradingView.com

The benchmark cryptocurrency was trading at $10,156.85 in post noon European trade, down by $3.35, or 0.03 percent, since the market open. Late yesterday, it touched a session high of $10,297.12 but failed to extend its profits as investors explored opportunities in risk-on assets. More specifically, they waited for the European Central Bank to deliver an economic easing package, as its president Mario Draghi takes the stage to publicize his monetary policy decisions.

Note: As of this time of writing, ECB has announced that it is cutting deposit rates from -0.5 to -0.4. It is also introducing a 20 billion economic easing package. Bitcoin is up by $50.

Investors Go After Risk-on Assets

A broad consensus of economists shows that ECB could push their interest rates into negative territory. They also see a new monetary easing of the sovereign and non-financial corporate bond purchases on the horizon. The move could eventually weaken the Euro, sparking a parallel trade war with the US, especially when Trump has threatened to slap extra tariffs on German automobiles and French wine.

The US president is, nevertheless, appearing softer on the trade war he is already fighting with China. He delayed an increase in tariffs on $250bn worth of Chinese goods by 15 days. His decision came after Beijing suspended tariffs on some US imports, signaling the first signs of trade resolve before the two sides meet in October for further negotiations.

Asian and European markets rejoiced on the ECB and trade resolve prospects. CSI 300 of Shanghai- and Shenzhen-listed stocks rose by 1.1 percent, while Japan’s Topic closed 0.7 percent higher. Europe’s benchmark Stoxx 600 rose by a minor 0.03 percent, while FTSE 100 of London advanced 0.3 percent. The S&P 500 Futures rose after tariff delay.

Meanwhile, safe-haven assets appeared cautious. Gold and the Japanese Yen rebounded to the downside after Trump’s tweets. While the precious metal was up 0.5 percent, yen looked stiff.

[Note: Gold has jumped above the $1,500 mark shortly after ECB’s decision to cut rates and restart economic easing.]

Original Source