Billionaire investor: Bitcoin rally fueled by US China currency war and tension in Hong Kong

Amidst intensifying geopolitical risks and growing uncertainty in the global financial market, heavyweight investors like Michael Novogratz and Travis Kling foresee Bitcoin emerging as a viable alternative store of value.

Throughout the past two weeks, Bitcoin prices increased from $9,110 to $11,530 across most major exchanges, achieving $12,300 at the weekly high.

Is capital flowing into Bitcoin as a result of global economic uncertainty?

Following the devaluation of the Chinese yuan, the U.S. equities market crashed, promptly leading the Dow Jones to crash by more than 1,200 points overnight.

Analysts remain divided on magnitude of the effect of the tension between the U.S. and China on the Bitcoin price.

Several indicators suggest that the interest towards Bitcoin, and crypto assets more broadly, in China increased in recent months as the probability of a favorable trade agreement with the U.S. declined.

Diar, a digital assets and regulation trade publication, reported in June that China accounts for 62 percent of Tether's onchain activity, dwarfing other major markets like the U.S. and Japan.

Former Wall Street equities portfolio manager and Ikigai Fund CEO Travis Kling emphasized that cryptocurrencies as an asset class is moving to the center of the global financial market in the wake of heightened tensions between leading economies.

Although Bitcoin is up by more than 26.5 percent within a two-week span, the market has shown a relatively high level of volatility in comparison to past months, with volatility at levels not seen since the market crash in early 2018.

With Bitcoin ranging, technical analysts such as Hsaka have said that if the Bitcoin price can climb above key resistance levels then there is a possibility it tests yearly highs, depending on the reaction of the asset following a minor correction from $12,300.