Bitcoin fails to act as safe haven in periods of turmoil

  • by Ofeed Team
  • August 29, 2019, 17:36 AM
  • 126 Views
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Bitcoin prices today fell sharply, failing to test it as a safe haven currency for investors in turbulent periods, as the U.S.-China trade war escalated further.

The leading currency in the cryptocurrency market reached $9,457.70, down 7.09%. Earlier in the day, Bitcoin had fallen about $600 in an hour, falling from $10,269 to $9,630 before experiencing the latest decline near $9,457.

The decline in the Bitcoin currency today was its lowest weekly level, after reaching its highest level on August 20 at $10,791.

The cryptocurrency market has been hurt by the damage caused by the U.S.-China trade war, especially after recent tensions between the world's two largest economies. In addition to the turmoil in Venezuela and Hong Kong, this in turn led to a decline in global equity markets and investors' tendency towards safe havens, especially gold.

The global markets will have another position of safe havens to which investors are heading at such times, especially after the recent reversal of U.S bond yields, which played a greater role in predicting a near-recession, thus losing investors another safe haven besides Bitcoin.

Markets are closely watching the outcome of the turmoil between the United States and China and the escalation of events in Hong Kong, Britain, Venezuela and other turmoil, which in turn affects the cryptocurrency market and the global economy in general.

On the other hand, the decline in Bitcoin was not the only decline in the cryptocurrency market, as Ethereum, which today fell by as much as 9.29% to trade near $169.73, shared it. Ripple has fallen by as much as 5.33%, and is now at $0.2529

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