Investors the world over are finding an unusual place to hide as the trade war between the United States and China roils global markets: bitcoin.
Investors piled into safer securities such as sovereign bonds Monday after China struck back in its trade dispute with the U.S. and let its currency weaken through a milestone level. Major cryptocurrencies, increasingly seen as a refuge during distressed times, also rose, with bitcoin gaining more than 14 percent and smaller peers including XRP and litecoin each rising more than 5 percent.
¡°It definitely appears to be acting somewhat like a safe haven,¡± said Brad Bechtel, head of foreign exchange at Jefferies LLC. ¡°When markets are calm and rallying, then Bitcoin sort of falls by the wayside,¡± he wrote by email. ¡°But every time we see turbulence in the market and it starts to sell off, you see Bitcoin¡± and other safe-haven assets rally.
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