Investing.com - Bitcoin continued to gain and is now near the $12,000 as some analysts now believe the cryptocurrency could be used as a hedge against the ongoing Sino-U.S. trade war that has sent most risky assets down this week.
Bitcoin traded 1.6% higher to $11,751.8 by 1:35 AM ET (05:35 GMT). It has now jumped 23.5% in the past seven days. The move upwards pushed Bitcoin's market cap up to $210.0B, or 67.43% of the total cryptocurrency market cap.
“It definitely appears to be acting somewhat like a safe haven,” Brad Bechtel, head of foreign exchange at Jefferies, told Bloomberg in an email.
“When markets are calm and rallying, then Bitcoin sort of falls by the wayside," he said. "But every time we see turbulence in the market and it starts to sell off, you see Bitcoin” and other safe-haven assets rally.
The gains came as global stock markets and other prices of other risky assets plunged this week following an escalation of Sino-U.S. trade tensions.
On Monday Beijing allowed the Chinese yuan to fall to its weakest level in a decade against the dollar while also requested state-owned companies to halt buying of U.S. agricultural products.
“China dropped the price of their currency to an almost a historic low. It’s called “currency manipulation.” Are you listening Federal Reserve? This is a major violation which will greatly weaken China over time!” said U.S. President Donald in a tweet overnight.
Last week, Trump said he would place further tariffs on Chinese goods starting on Sept. 1 if trade negotiations did not show marked progress.
A Treasury statement by the U.S. declared China a currency manipulator and said China’s central bank “has extensive experience manipulating its currency and remains prepared to do so on an ongoing basis.”