Treasury secretary Steven Mnuchin states that the U.S. and China were close to making a deal in the ongoing trade war. While he is optimistic about the upcoming G-20 summit, the question is: could it save Huawei and how will it affect Bitcoin.
A treasury secretary Steven Mnuchin spoke to CNBC and explained that president Trump and China’s Xi Jinping were “about 90% of the way there” and that he thinks that there “is a path” to complete this deal. While he believes that the upcoming G-20 summit in Japan will be very good soil for productive talks between the leaders, could this really save Huawei and affect Bitcoin with the overall crypto market?
“The message we want to hear is that they want to come back to the table and continue because I think there is a good outcome for their economy and the U.S. economy to get balanced trade and to continue to build on this relationship,” he commented.
The Outcome of G-20 Could Be Game-Changing For The Global Economy
This Saturday, Trump is meeting Xi Jinping and that is a meeting that the whole economic and financial world is waiting for. While Mnuchin believes that the meeting could end on a positive note, experts point out that despite expectations the meeting could also end on a note that both parties agree on continuing discussions.
However, deal or not, this meeting could be pivotal for the world’s economy and financial markets.
Recently U.S. president Donald Trump banned Chinese telecom giant Huawei Technologies and more multiple its affiliates from buying American technology components over national security concerns. U.S. government and military agencies aren’t allowed to purchase Huawei products.
The ongoing trade war has affected both country economies. However, both leaders won’t admit it.
Can This Affect Bitcoin and Crypto in General?
If we look at Bitcoin as a part of the financial world, then we believe, yes.
Since the SP-500 index has been gradually falling the past days in the shadow of the upcoming G-20 summit, it means that investors are concerned about the impact that this summit could bring. They are exiting traditional markets because everyone knows that the economic crisis is around the corner.
Technically, it should’ve already happened, but there are rumors that this economic growth is artificially sustained. If we look at it from that way that this trade war between the U.S. and China could potentially start the next economic and financial crisis, then, of course, the cryptocurrency markets and Bitcoin will be affected at large.
But that is the question what everyone is finding answers to – will the institutional investors and traditional stock traders move to cryptocurrency markets in case of an economic crisis? Will the institution and corporation money start flowing into Bitcoin and crypto in general? I believe no one can give a certain answer to this because it depends on so many aspects. The economic crisis, in general, will bring massive changes to the financial world as such.
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