Bitcoin Soars Over $10,600 As Yuan Falls Against The Dollar: BTC Up Over $1,200 in Past 5 Days
Throughout the first half of this year, Bitcoin had regained the high prices that are associated with the leading cryptocurrency. Over the past couple of months, the cryptocurrency’s run had stalled as it struggled to surge past the $10,000 ceiling.
Bitcoin has resumed its surging patterns over the past day as bulls have come back onto the market. After the Chicago Mercantile Exchange’s (CME) close of August’s BItcoin futures contract, Bitcoin has been experiencing a bullish price rise. Analysts had previously predicted that the closing of the futures contracts would lead to an increase in the price of Bitcoin, and this seems to have come true.
The leading cryptocurrency is currently trading around $10,600. This figure represents a 12% increase in the price of Bitcoin since the same time last week when the crypto asset was trading at $9,300. Market experts expect the price of Bitcoin to continue on its growth path, which might influence a general increase in crypto trading in general.
Bitcoin’s price has risen with the Chinese Yuan for the second time this year, and this shows that the cryptocurrency’s price is being affected by macroeconomic activity around the world. The latest reaction of the Yuan has come from the most recent tariffs imposed by Trump’s administration on Chinese goods. The Yuan rose to over 7.2 to the dollar, and Bitcoin has surged with the fiat currency. According to financial analysts, this could be a sign that Bitcoin is being bought as digital gold as a reaction to the turmoil on money markets.
Bitcoin as a Safe Haven Asset
Investors have been placing their funds in Bitcoin as they consider the digital asset as one of the safe-haven investments available on the market. Volatility on the money markets, which is being influenced by a number of events such as the US-China trade war and Brexit, has led investors to look for other avenues through which they can secure their funds. Government bonds are at the top of the list, and now investors have turned to Bitcoin.
Some economists and investors have come out and challenged the view that Bitcoin could be a safe haven asset. Peter Schmidt, a prominent investor, and economist, said that the crypto asset’s inability to hold on to the gains it made before shows that it has failed the safe haven test.
The Yuan-Bitcoin relationship shows that some investors believe that moving their funds from the fiat currency to Bitcoin is a better move than placing it in other assets. At the end of it all, the belief that Bitcoin is a safe haven asset is growing, and as volatility grows on money markets, more investors can be expected to engage in Bitcoin trading.