Bitcoin Price Grows Amid Stock Exchange Turmoil
Following the continuing unrest at global markets, especially China, the bitcoin exchange rate skyrocketed to $455 at the time of writing.
Overnight volatility in China has caused the American stocks to open sharply lower. The Chinese capital outflow restrictions and continuing economic slowdown have been cited among the main reasons for recent ascension of bitcoin’s exchange rate.
Amidst ncreasing concerns about the Chinese economy and continuing fall in oil prices, shares on the world’s major stock exchanges have been falling for several days in a row. At the beginning of the week, China experienced automatic suspension of trades, as the prices were almost literally freefalling.
Increasing bitcoin exchange rate makes cryptocurrency a safer haven than gold; the latter has lost almost 10% of its worth as compared to the same time last year. Bitcoin, on the other hand, has grown considerably during the same period.
Credit for the chart goes to Bitstamp
Justin O’Connell of Bitcoin Magazine says:
“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.”
Bitcoin trading volume also peaked surpassing the $3 million mark.
However, the astounding volatility of bitcoin continues hindering its wider adoption on financial markets.
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