Bitcoin On A High Cross USD 11,000 While Trade War Fears Crushing Stocks
Bitcoin increased by 9% on Monday, pushing forward to past US$ 11,000 for the very first time since mid-July 2019. The world’s largest cryptocurrency jumped as high as US$ 11,860, recording a more than 3 weeks high. The value of Bitcoin now accounts for almost 70% of the global crypto market. On the other hand, the global stock market has been going down due to renewed trade uncertainty. The main reason is president Mr. Donald Trump said that they would levy 10% charge on US$ 300 billion worth of Chinese goods. The STOXX Europe 600 index slipped by 1.6% while MSCI’s broadest index of Asia-Pacific shares outside Japan dropped 2.5%. Meanwhile, Dow futures drop to more than 100 points. Previously analyst argued saying that bitcoin might be the safe asset, with investors having moved towards digital asset in the past are back on thriving in U.S.-Sino tensions.
Digital currency CEO Mr. Charles Hayter said that Bitcoin has a lot of use cases and digital gold is one of the best forms. With bitcoins rise in value, china’s currency broke through the level of 7 yuan to the dollar for the first time in 11 years. An analyst at eToro trading platform Simon peters said that as yuan depreciates Chinese investors will look for the diversification. Peters also stated that a large number of crypto investors are from china, identifying a strong chance that some of them are backing bitcoin’s chances against yuan.
In 2019, cryptocurrency has been on rising nearly doubled its price in the last 3 months. Although it still below year to date high of US$ 13,880. Also, big companies such as Facebook recently proposed digital currency named Libra has helped Bitcoin’s rise. While these two are very different digital currencies but expert predicted that Facebook working on its own token might help legitimize bitcoin and other cryptocurrencies. However, the Libra project has been criticized by officials worldwide, afraid by the risk it may pose to the financial system.