With all the talks of retaliatory trade wars, turmoil in Hong Kong, and global markets on the downswing, it’s hard to pinpoint why crypto prices are surging at the moment. But Tom Maxon, CoolBitX’s head of U.S. operations, believe it has less to do with macro conditions and more to do with crypto whales taking advantage of the market momentum.
Tom Maxon, Head of U.S. Operations, CoolBitX, an international blockchain security company specializing in digital asset compliance hardware and software:
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“While markets are in turmoil around the globe, the recent bitcoin surge above $11K has a lot more to do with the 10 percent tariffs on $300 billion worth of Chinese goods announced by President Trump. This economic uncertainty has sent the Yuan into a tailspin, and China has responded with another escalation of the trade war. The Yuan has since rebounded to the key 7 per dollar level, but uncertainty is still high. For a lot of currency holders, bitcoin is seen as a safe haven.
“However, there is a much bigger issue at play in the digital asset marketplace. Billions of dollars in daily volume are handled by crypto whales and managed portfolios through over-the-counter (OTC) desks, and actually relatively smaller volume is held in exchanges that are accessible by retail investors. OTC desks are largely unregulated and therefore, it is impossible to know exactly where the inflows and outflows are coming from. These crypto whales and shrewd, large-volume traders (including exchanges themselves) will most likely leverage bitcoin’s current upward momentum toward a new high from its previous peak in order to short it to the detriment of less powerful retail traders.”
About Tom Maxon
Thomas Maxon is the Head of U.S. Operations at CoolBitX, the creator of the first mobile hardware wallet for digital assets, and Sygna, a first-to-market attestable end-to-end KYC wallet solution.
For more information on CoolBitX, visit https://coolbitx.com/.