- Bitcoin (BTC) peaks at $ 9, . , its highest in almost three months.
- At its highest point Wednesday, the largest cryptocurrency was up % year-to-date .
- Bitcoin is behaving a lot like a “safe haven” asset, according to Fundstrat’s Tom Lee.
Bitcoin’s price rallied to nearly three-month highs on Wednesday, as the largest cryptocurrency continued to demonstrate risk-off appeal amid the coronavirus outbreak .
BTC / USD Rallies; Altcoins Follow
Bitcoin peaked at $ 9, . on Bitstamp, its highest since early November. The flagship cryptocurrency was last seen trading at $ 9, , having gained more than 3%.
The technical charts showcase an asset that’s in a clear uptrend. The latest candle on the daily chart puts bitcoin above the – day moving average. It blew past the 66 – day MA more than three weeks ago.
At current values, bitcoin accounts for 99. 4% of the overall cryptocurrency market. Its market cap of nearly $ billion represents a $ 66 billion recovery from last month’s swing low.
Altcoins and tokens followed in bitcoin’s lead on Wednesday, as Ethereum, bitcoin cash, Litecoin and EOS all reported gains of at least 2%. The total crypto market cap peaked near $ billion, the highest since late September.
Battle of the Safe Havens
Bitcoin is not only the best-performing asset of the last decade, it’s arguably the most attractive haven for investors looking to escape economic and geopolitical risks.
On Tuesday, Fundstrat’s Tom Lee compared bitcoin’s performance to gold in the so-called battle of the safe havens. At the time, bitcoin had gained % year-to-date. At the highest point on Wednesday, the year-to-date returns were roughly (%.)
By comparison, gold is up “a decent 3%” on the year.
While bitcoin still has a long way to go before it’s ever considered a bona fide safe haven, its correlation with gold is growing stronger.
For the first time this year, bitcoin’s – day correlation with the yellow metal has turned positive, according to Bloomberg. Put differently, bitcoin has been acting more like gold and less like stocks in recent months.
Analyst Mati Greenspan highlighted this trend in a chart that compares bitcoin’s correlation to gold and stocks:
Disclaimer: The above should not be considered trading advice from CCN.com. The writer owns bitcoin and other cryptocurrencies. He holds investment positions in the coins but does not engage in short-term or day-trading.
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