Pelosi’s Taiwan Trip Sinks Stocks And Bitcoin

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Well, never thought I would write that headline, but there it is folks. Speaker of the House Nancy Pelosi’s trip to Taiwan has managed to sink both stocks and crypto while the Chinese foreign ministry reacted angrily to the planned visit.

China considers Taiwan to be a rogue province whilst the US has vowed to protect the island at all costs. The trip of Nancy Pelosi seems to have serious consequences for global markets who went risk-off again. The US navy later admitted that four warships were deployed just east of Taiwan.

It’s all about the Taiwan threat, explained Robert Alster, chief investment officer at Close Brothers Asset Management. There’s no way you can say its not moved up to geopolitical agenda.

Searches flatten

Crypto markets followed suit with Bitcoin falling to $22k on Tuesday afternoon while Ether fell from $1,700 to lower levels.

We might see ether falling to $1,500, with Nancy Pelosi stopping over in Taiwan.

Markus Thielen, CIO of asset manager IDEG explained the move.

Ether’s price also lost momentum as enthusiasm for the upcoming ‘merge’ dropped again.

ETH moves appear to lose momentum and google trends indicate that ‘searches’ for Ethereum merge have flattened out. So the positive newsflow is taking a backseat.

Thielen explained further.