The China-Taiwan crisis may affect the price of bitcoin

Taiwan and China are arguing over Taiwan’s sovereignty, and this has a significant impact on the cryptocurrency market. The situation around bitcoin escalated after U.S. House Speaker Nancy Pelosi visited the island.

The long-running tension between Taiwan and China reached a boiling point on Wednesday, when US and Chinese naval vessels were mobilized. The Japanese Air Force was also involved. As a result, the price of bitcoin dropped to $ 22,600 within a day.

Although bitcoin is called digital gold, analysts say that any increase in the military threat from China will negatively affect the price of BTC. Experts note that if tensions between Taiwan and China increase, the trend toward gold as a traditionally safe asset will intensify.

By the way, after Russia launched a full-scale military invasion of Ukraine, the price of bitcoin also fell sharply. Gold prices, on the other hand, have risen.