Just as investors begin to question the logic of Bitcoin serving as a refuge amid global financial-market turmoil, a gauge followed by technical analysts suggests there could be more gains ahead.<\/p>\n
Based on the GTI VERA Convergence Divergence Indicator, which detects positive and negative trends, the largest cryptocurrency has generated a new buy signal based on its weekend trading, which saw prices surge.<\/p>\n
It\u2019s the first buy signal since June when looking at this indicator and could potentially signal new highs are ahead.<\/p>\n
The tide is rising for Bitcoin compared with other risk assets, said Mike McGlone, an analyst with Bloomberg Intelligence.<\/p>\n
\u201cBitcoin should remain a primary beneficiary of growing demand for its store-of-value, quasi-currency asset properties, similar to gold,\u201d he wrote in a note.<\/p>\n
\u201cFavorable macroeconomic fundamentals — plunging bond yields and rising stock-market volatility — appear to have endurance and should further differentiate Bitcoin from other crypto assets.\u201d<\/p>\n
Global markets were rocked on Monday after China devalued its currency in response to the Trump administration\u2019s threat to impose new 10% tariffs on the Asian nation\u2019s goods. Bitcoin, and other digital assets, gained as investors rushed into safe haven assets amid the brutal sell-off. Bitcoin rose close to 13% on the day.<\/p>\n
But as markets recovered on Tuesday after China moved to soothe the situation by stabilising the yuan, crypto assets failed to hold onto the gains.<\/p>\n
That\u2019s because extreme price swings, a history of crypto exchange hacks and allegations of manipulation raise questions of the wisdom of buying digital assets as a refuge. Bitcoin was little changed at $11,747 as of 12h45 in New York, after climbing as much as 5.1%.<\/p>\n
Yet if volatility become more prevalent in other markets, Bitcoin could regain its role as a haven.<\/p>\n
It \u201cseems to uniquely enjoy a status as a store of value, similar to gold, which may explain why it is building positive momentum amid the 10% tariff announcements,\u201d said Akbar Thobhani, chief executive officer of SFOX Inc., a crypto prime dealer.<\/p>\n