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Bitcoin up 2%, Provides Shelter Amid Crypto Storm

Published 08/09/2019, 02:33 PM
Updated 08/09/2019, 03:06 PM
© Reuters.
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Investing.com – As the debate continues on whether bitcoin can be characterized as a safe haven there appeared little doubt among investors on Friday that the popular crypto can be the place to park cash when a sea of red engulfs the broader market.

Bitcoin bucked the broad-based crypto decline, rising 2.07% to $11,850 as it continued to chip away at the $12,000 level after failing to hold an intraday high of $12,130.

The move higher comes as data strengthened claims by some who have suggested that bitcoin is set to capitalized on the flight-to-safety trade as the Trump administration and Beijing look set to deepen their trade rift.

As the U.S.-China trade war persists and more regulatory clarity is being achieved around Bitcoin, BTC appears to be emerging more and more as a global hedge, according to report from crypto insights and analysis company SFOX, released on Wednesday.

The new findings backed claims by Nigel Green, chief executive of financial consultancy firm deVere Group, who said earlier this week that bitcoin is becoming a flight-to-safety asset during times of market uncertainty.

"Bitcoin is currently realising its reputation as a form of digital gold. Up to now, gold has been known as the ultimate safe-haven asset, but bitcoin – which shares its key characteristics of being a store of value and scarcity – could potentially dethrone gold in the future as the world becomes increasingly digitised," Green said.

The same, however, cannot be said of other cryptos, many of which were nursing steep losses late-Friday.

XRP fell 4.08% to $0.2947, Ethereum lost 4.89% to $207.04 and Litecoin was down 8.39% to $83.29.

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