Yuan Falls, Bitcoin Jumps, Trump Says ‘Major Violation’ By China, Pressures Fed

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Bitcoin (BTC) is currently trading up 8% at $11,787 on Coinbase on the back of a yuan devaluation that dramatically escalates the US-China trade war. It is difficult not to ponder that a nightmare scenario for stocks might be opening up. A background of spreading trade protectionism and slowing global growth, capped off with a zero-sum currency war, is the last thing a frothy equity markets needed. And this all comes as the US Federal Reserve’s 0.25% interest rate cut was greeted poorly by the cheap money-addicted stock market, even as interest rate cuts around the world are shown to have weakening effect. $7-plus yuan triggers stock meltdown, gold, bonds and bitcoin rally Gold and bonds are benefiting and so too is bitcoin, as we predicted in our previous report looking at Trump, China and the trade war. Our suggestion to closely watch the yuan v US dollar exchange rate…

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