Bitcoin jumped 15% above $8000, while global markets reacted negatively to the ongoing trade war, and US stock markets headed the other way with the Dow Jones dropping 696 points, posting the biggest daily loss since January.
The sharp drop in stocks came after news that China raised tariffs on about $60 billion of American goods in an ongoing trade war between the world's largest economies. Chinese stocks also fell, and the Chinese yuan reached its lowest level in four months this week.
The rise of the world's first and largest cryptocurrency coincided with the decline of the Chinese yuan this month, and some analysts at Q8 Trade That if China wants to diversify, it makes sense for Bitcoin to be the alternative in the short term.
While we do not see the direct flows of those buying bitcoins, we can see that bids to buy bitcoins in the recent period have risen with the significant decline in the value of the Chinese yuan against the US dollar.
Markets are looking forward to further upside
Bitcoin prices have yet to recover relative to all-time highs near $20,000 that was driven by a scramble from retail investors, but this year the cryptocurrency has more than doubled after starting the year around $3,700.
The price action is even more dramatic in the context of the last three months, as bitcoin was trading at around $3,600 on February 13 and has now doubled in market capitalization, a good change considering 2018 has been slow.
The upward move pushed the market value of Bitcoin to rise to 140.5 billion dollars, or about 60.34% of the total market value of cryptocurrencies, and the total value of digital currencies rose to about 241.2 billion dollars.
Over the past seven days, Bitcoin has seen a surge of 37,24%, trading in a range of $5,745 to $8,018.
At its current price, Bitcoin is still down 59.65% from its all-time high of $19,770, set on December 17, 2017.
Bitcoin Still Under Pressure
Despite this rise, Bitcoin still faces a lot of cash, especially after about 7,000 Bitcoin worth more than $40 million were stolen last week from Binance, one of the largest cryptocurrency exchanges in the world, and a study published in March showed That 95% of bitcoin spot trading is fake by unregulated exchanges.
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