China countered, the US stocks collapsed, and Bitcoin laughed.

According to CCTV News on Friday, the Chinese side was forced to take countermeasures against the US side's 10% tariff on goods imported from China for about 300 billion US dollars. With the approval of the State Council, the State Council Customs Tariff Commission decided to impose 10% and 5% tariffs on 5078 tax items originating in the United States and about 75 billion US dollars, divided into two batches from 12:00 on September 1, 2019. It will be implemented at 12:01 on December 15.

As soon as the news came out, US stocks opened sharply lower. Although the intraday chairman’s speech improved slightly, he continued to dive sharply. The Dow, S&P and Nasdaq fell. In contrast, the cryptocurrency market has risen all the way today. According to the data, the highest value cryptocurrency bitcoin is currently close to $10,500, with a 24-hour increase of more than 2%.

Forbes wrote that Bitcoin is replacing gold as a safe-haven asset and its importance will only continue to increase. Although the current market value of Bitcoin is only about 200 billion US dollars, it will eventually exceed the market value of more than 5 trillion US dollars of gold.

In fact, in the past two months, whether bitcoin can be used as a safe haven has been a topic of discussion in the industry.

Former Goldman executive Raoul Pal said on Twitter, “We are at the most important moment in the foreign exchange market in the past 30 years. The dollar has an uncontrollable upward risk.” He believes that the only good news is that this will push the bit. The price of the currency is bullish.

According to Bloomberg, the correlation between Bitcoin and traditional “safe haven” gold has soared to 0.837 in the past three months from the previous 0.496, almost doubling. This shows that the uncertainty of the global economic and political situation makes investors increasingly inclined to regard “digital gold” bitcoin as the safe-haven asset like gold.

Chris Reinertsen, chief marketing officer of Rhythm Technologies, said in an interview with Forbes that Bitcoin is joining the ranks of traditional safe-haven assets such as US Treasury bonds, gold and Swiss francs. He said that

“The Chinese yuan has just fallen below the 11-year low against the dollar. A lot of money flows into safe-haven assets, including bitcoin. In the past few years, as the global economic uncertainty has increased, bitcoin has grown. The trend has already begun to appear due to the impact of the macroeconomic situation."

OpenLTV CEO Kirill Bensonoff also agreed. He told Forbes,

“I believe that Bitcoin is becoming a safe-haven asset like gold. Although it is not completely related to gold, Bitcoin will rebound whenever the main market is down. I believe that more money will flow into Bitcoin soon. ""

However, some people do not agree. Yoni Assia, co-founder and CEO of online trading platform EToro, believes that

“It is a paradox to say that Bitcoin is a safe haven asset because it is a very high-risk asset class. Bitcoin can be used as an alternative stored value tool, but it is not a safe haven asset.”

By Xiu MU

This article comes from the push bitpush.news, reproduced need to indicate the source.

Disclaimer: It is only the author's point of view and does not constitute investment advice. Investment is risky and at your own risk.