Bitcoin Risks an Abrupt Fall as Trump Threatens Phase One Deal With China

• Bitcoin faces risks of a short-term, but steep downside correction as Donald Trump threatens to terminate the phase one deal with China.
• Investor fears that a new trade war with Beijing would escalate the global economic crisis further amidst the Coronavirus-induced lockdown.
• Losses in the Wall Street index in March influenced traders to liquidate their bitcoin positions to cover their margin calls.

The most profitable asset is always at the risk of becoming the most battered asset.

Bitcoin, which is now sitting at 20 percent year-to-date returns, faces a similar threat from traders and investors alike. Its likelihood of suffering an abrupt fall surged after the U.S. started attacking China over the origins of the coronavirus pandemic.

US state secretary, Mike Pompeo, on Sunday, repeated the U.S. government’s linking of the virus outbreak to a laboratory in Wuhan, China. He further accused Beijing of hiding information about the virus and refusing to cooperate with foreign scientists…