One asset manages to escape fear spreading from coronavirus: bitcoin.
The largest cryptocurrency rose to $ 9,142.80 today, levels last reached early in November. Other cryptos are up as well, with the Bloomberg Galaxy Crypto Index earning 1.7% and hitting a two-month high.
The promotions came after a week of underperformance.
Potential explanations for the rise in bitcoin include the dubious status of the asset as a safe haven against the backdrop of risk-off sentiment. JPMorgan’s Nikolas Panigirtzoglou said cryptocurrency options have made a “strong start to the year”.
“Some hedge funds do not have a fundamental perspective on bitcoin and its future direction and they can benefit from its trading volatility,” Panigirtzoglou said. “The reputation of CME and the trusted derivative markets of the United States can have the significant advantage of attracting these potential market players.”
Nomura Securities’s Charlie McElligott said US 5-year bond yields were at their most negative levels since April 2017 and that “plays the role of a great bullish catalyst for gold and Bitcoin.”
Trader Aleksandar Kumanov