By CCN Markets: Bitcoin has been hawked as a safe haven asset for quite some time now, with bulls crediting the rising price of the cryptocurrency in 2019 to macroeconomic uncertainties and geopolitical tensions arising out of the US-China trade war.

Recent price action suggests that bitcoin might finally be operating as a real-time macroeconomic hedge, as pointed out by economist and trader Alex Krüger.

Bitcoin price takes off after Trump tweets

President Donald Trump went on a characteristic tweetstorm yesterday, railing against China and increasing tariffs on imports from the Asian nation.

Trump’s tweets came after China announced that it would place additional duties of up to 10% on imports from the US, beginning Sept. 1.

Not surprisingly, an infuriated Trump responded by imposing higher tariffs on Chinese goods, and once he was done with his counterattack, the price of bitcoin shot up sharply.

Chart showing bitcoin price action.
Alex Krüger’s chart shows the spike in the bitcoin price just after Trump’s tweets. | Source: Twitter/Alex Krüger

The price reaction of the flagship cryptocurrency is consistent with what a macro hedge such as gold would do in such a situation, with investors piling into the crypto asset to save their portfolios from the fallout of a protracted trade war.

Of course, the rally didn’t hold, and BTC has since slid back below $10,000.

Is gold finally old?

Nevertheless, bitcoin bulls believe that the cryptocurrency will eventually replace gold, and the price action immediately following Trump’s tweets seems to reaffirm that view.

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