On Monday, Bitcoin has increased by 9%, pushing forward to past US$ 11,000 for the very first time since mid-July 2019. The world’s largest cryptocurrency has jumped as high as US$ 11,860, recording more than three 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 behind the increased rate is president Mr. Donald Trump said that they would levy a 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 fall to more than 100 points.
Previously analyst had 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 has broken 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. He has identified a strong chance that some of them are backing bitcoin’s chances against yuan.
In 2019, cryptocurrency has been rising; it has nearly doubled its price in the last three months. Although, it remains below year to date high of US$ 13,880. Also, big companies such as Facebook have recently proposed digital currency named Libra, which has helped Bitcoin’s rise. While these two are very different digital currencies. But expert had predicted that Facebook working on its token might help validate bitcoin and other cryptocurrencies. Officials across the globe have criticized the Libra project because of the risk it may pose to the financial system.
Kevin has worked as a business executive in an insurance firm before joining Janmorgan Media as the major business correspondent. After joining here, he has helped craft not only some of the insightful articles but also regular articles that don’t compromise perspective. If not checking out business publications or news, you can see her listening to music.