Bitcoin is beating gold while everyone at the global markets is quietly watching what is going to happen.
The cryptocurrency is trading at $11,700 today, with 16% gains on a month-to-date basis. Meanwhile, the old safe-haven asset, gold, has added only 6% this month.
What happened was that the precious metal picked up a bid at $1,400 on August 1, after Donald Trump decided to escalate trade tensions with China. The U. S. President’s move caused a flight-to-quality so the S&P 500, a global benchmark for riskier assets, fell 0.9% on the same day.
It got worse earlier this week when China let its official currency to fall beyond the major psychological level of 7¥ per U.S. Dollar.
It led to the S&P 500 fell to a two-month low of $2,822 on Monday. Meanwhile gold extended gains to hit a new high of $1,510 yesterday. Surprisingly, bitcoin also found takers near $9,900 on August 1 and increased to a one-month high of $12,325 on Tuesday.
Ran Neuner, a crypto trader and the CEO of Onchain Capital, shared his opinion on the possible future of the new safe haven posting on his twitter:
Even though there is not enough statistics to predict for sure that the bitcoin is going to be a new safe-haven asset, the latest events on the market show that everything is moving this direction.
