Economists at global investment bank Goldman Sachs believe there to be no end in sight to the ongoing US-China trade war. Although damaging to economic interests in both nations, the lack of resolution may well be bullish for Bitcoin.
The cryptocurrency has historically performed well at times of heightened geopolitical tension. This is due to its some of the asset’s hard monetary policy.
Goldman Sachs Economists Fear Trade War May Lead to Recession
According to a report in Reuters, a note to clients sent out yesterday by Goldman Sachs states that the bank is expecting that the US-China trade war won’t be resolved before the 2020 presidential election. Economists from the global banking giant also stated that they believed a recession to be likely.
Goldman Sachs believe the 10 percent tariff on the last $300 billion of Chinese imports will go into effect, as planned, on September 1. In response, China has threatened to stop buying US agricultural products. The bank does not think a resolution likely in 2019.