Bitcoin price soared 9% on Monday, for the first time since around mid-July, performing like a safe haven asset as it edged past $11,000. Price of the world’s largest cryptocurrency climbed as high as $11,860, according to CoinDesk data, hitting a more than 3 week high. The value of Bitcoin now accounts for nearly 70% of the global crypto market, according to CoinMarketCap.
On the other side, the global stock markets have been sliding lower, on back of renewed trade uncertainty after the President Donald Trump said that in last week that Washington would impose 10% tariffs on another $300 billion worth of Chinese goods.
On Monday, Pan-European Stoxx 600 index slipped 1.6%, while the MSCI’s broadest index of Asia Pacific shares outside Japan plunged 2.5%. Meanwhile, the Dow futures were off by about 100 points.
Previously, most analysts have argued the case that bitcoin could be a safe haven asset, with the investors having flocked to digital asset, in the past on back of an escalation in U.S-Sino tensions.
“Bitcoin has many use cases and one of the most important is as a form of digital gold,” Charles Hayter, CEO of digital currency comparison platform CryptoCompare, told CNBC by email on Monday. “We have seen bitcoin jump before on macro uncertainty as it becomes a conduit and flight-to-safety asset.”