Menu

Search

  |   Digital Currency

Menu

  |   Digital Currency

Search

Bitcoin Acts As Safe Haven Amid Economic Turmoil; Trading Volumes Spike

Bitcoin Trading Volume for first week of 2016 (Data Source: Bitcoinity.org)

The year 2016 has not been fruitful for global markets so far. The first week started off with China halting trade which dragged down major equity indices, commodities and markets. Later, on Thursday, shares on major exchanges fell for a sixth straight day and crude oil prices hit multi-year lows as concerns over China’s economy mounted, Reuters reported.

The S&P 500 shed 47.17 points, or 2.37 percent, to 1,943.09 and the Nasdaq Composite fell 146.34 points, or 3.03 percent, to 4,689.43. Brent crude cut a loss of more than 6 percent to trade down 1.6 percent, while U.S. crude, down as much as 5.5 percent earlier, was down 2.3 percent.

The U.S. dollar also failed to maintain its strength against a basket of currencies. It lost 1.4 percent to $1.0929 versus the euro and 0.7 percent to the yen at 117.63.

However, bitcoin soared higher on Thursday, rising from 429.99 levels to a high of 459.16 levels before closing at 457 levels.

Justin O'Connell of Bitcoin Magazine says that the digital currency acted in much the same way it usually does when stocks become volatile as they have across the globe in the first week of trading.

“Although engulfed in a bit of a “constitutional crisis,” Bitcoin appears to enjoy healthy demand in times of crisis, almost acting as a safe haven asset as investors call commodities and investments that do well in times of uncertainty”, he added.

This “safe haven” possibility is further evidenced by a spike in the Bitcoin trading volume seen on the chart provided by bitcoinity.org. On Thursday, BTC trading volume rose considerably, surpassing the 3.0M mark.

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

May 24 19:00 UTC Released

USCattle Marketed

Actual

106.9 %

Forecast

106.6 %

Previous

97 %

May 24 19:00 UTC Released

USCattle Placed On Fd

Actual

108.7 %

Forecast

113 %

Previous

105 %

January 31 00:00 UTC 689700689700m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 689700689700m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 701520701520m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 689700689700m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 701520701520m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 689700689700m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 689700689700m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 689700689700m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.