- Russian President Putin supports using the Chinese yuan in bilateral trade and replacing the US dollar for international payments.
- YouTuber Crypto Michael says traders should note that these events can impact Bitcoin’s price.
- Michael predicts that inflation dropping and consistent interest rates can push BTC value higher.
YouTuber Crypto Michael posted a new video discussing the change in policy direction by the Federal Reserve and the collaboration between China and Russia play a role in the upsurge of Bitcoin’s bullish market trend.
During Chinese President Xi Jinping’s visit to Russia, Russian President Vladimir Putin voiced his approval of using the Chinese yuan as a payment method in bilateral trade, particularly with emerging economies. Moreover, Putin has also expressed support for replacing the US dollar as a settlement currency for international payments.
The YouTuber recapped that currently, two-thirds of commercial exchanges between the two countries are managed using national currencies, and Putin believes this trend should be further developed with greater integration between their banking and market institutions.
Additionally, Russia is among the countries moving away from the US dollar in their payment arrangements, with SWIFT data showing that Russia was the third largest market for yuan-based global payments in August.
Crypto Michael also urged traders to make a note of micro-economic events such as these, as they determine whether or not the price index comes high or low.
Moreover, the video also discussed the Federal Reserve’s historical practices around cutting interest rates. Analyzing data from the 1970s to 2019, the YouTuber suggested that if the current trend continues for the next few points, Bitcoin’s price could rise.
Additionally, Michael noted a number of threats to the value of the US Dollar that could push the value of Bitcoin higher still, including falling inflation and unemployment and more countries “adopting towards” China instead of the US.
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