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A recent report from China indicates the government’s outlook on crypto could be evolving as geopolitical tensions continue to boil.

Xinhua News Agency, China’s state-run press agency, published analysis on Tuesday stating that Bitcoin displays the attributes of a “safe-haven asset.”

“Since the beginning of this year, due to multiple factors such as the escalation of economic and trade disputes and the expected downward adjustment of the global economic growth rate, global capital market volatility has intensified.

Bitcoin has shown the characteristics of safe-haven assets and attracted many investors’ attention. In addition, Facebook’s proposed release of the cryptocurrency Libra has greatly increased the market’s popularity and attracted more investors into the cryptocurrency market.”

The analysis cuts a different tack than previous moves made by the Chinese government, which banned initial coin offerings and most forms of Bitcoin trading in 2017. The government has also discouraged Bitcoin mining, driving many mining operations out of business.

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China’s potential warming to crypto comes as US President Donald Trump continues to threaten the country with a slew of new of tariffs.

Says Garrick Hileman, head of research at cryptocurrency services firm Blockchain,

“Fears of China’s trade concerns have been driving up demands in China. We’re seeing on-shore premium for Bitcoin in China that’s fueling the price increase there as well.”

Just last week, Grayscale Investments, the world’s largest cryptocurrency asset manager, released a report advocating for Bitcoin investments as a hedge against global liquidity crises.

However, Xinhua’s analysis does caution that “investors should be alert to the speculative risks in the Bitcoin market.”

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