The bitcoin price soared more than 10 percent over the last 24 hours, briefly hitting $11,840 on Coinbase. The surge higher coincides with a blistering selloff on the Asian stock markets, triggered by a breakdown in US-China trade relations. It appears that bitcoin is establishing itself as a legitimate hedge to volatility in traditional markets.
The yuan fell below $7 - a psychological ‘line in the sand’ for China and a level not seen in more than a decade. Meanwhile, violence in Hong Kong sent Asian stock markets tumbling.
Among the market chaos, the bitcoin price and gold are among the only rising assets, strengthening the narrative of BTC as something of a safe haven. The yuan fell below $7 - a psychological ‘line in the sand’ for China and a level not seen in more than a decade. Meanwhile, violence in Hong Kong sent Asian stock markets tumbling.
Among the market chaos, the bitcoin price and gold are among the only rising assets, strengthening the narrative of BTC as something of a safe haven.
While Bitcoin historically has had relatively low correlation with most asset classes, it has lately moved inversely to Asian stocks. Equities were roiled on Monday after China’s yuan fell past 7 per dollar, a key psychological level for traders. The risk-off shift intensified on reports China had asked state buyers to halt imports of American agriculture imports, further escalating trade tensions after U.S. President Donald Trump last week proposed adding 10% tariffs on another $300 billion in Chinese imports starting Sept. 1.
In the past three sessions, BTC gained strong momentum above the USD 11,000 resistance level. BTC/USD surpassed many important resistances near USD 11,200, USD 11,500 and USD 11,700. The price traded close to the USD 11,850 level and it is currently consolidating gains. An immediate resistance is near the USD 12,000 level, above which the price could rise further towards the USD 12,500 level.