LONDON (Reuters) – Bitcoin’s recent gains as stocks plummeted on U.S.-China trade tensions reflect not so much its safe-haven credentials but its potential for quick gains, cryptocurrency and foreign exchange traders said on Tuesday.
FILE PHOTO: Exchange rates and logos of Bitcoin (BTH), Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) are seen on the display of a cryptocurrency ATM of blockchain payment service provider Vaerdex in Zurich, Switzerland, May 29, 2019. REUTERS/Arnd Wiegmann/File Photo
The biggest coin jumped over 7% on Monday as U.S. stocks slumped 3%. Safe haven assets from the Japanese yen to gold to government bonds – expected to hold or gain value amid turbulent markets – also rallied as investors fretted over the impact of the trade war on the world economy.
Crypto enthusiasts said the moves heralded bitcoin’s achieving its potential as a haven. Bitcoin, their argument goes, is immune to the impact of geopolitical tensions or government interference because of its decentralized nature.