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Bitcoin Undergoes Subdued Trade as Traditional Assets See Volatility

Published 08/08/2019, 01:23 am
Updated 08/08/2019, 01:50 am
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Investing.com - Bitcoin traded slightly lower on Wednesday in uncharacteristically subdued trade, while other traditional assets underwent big moves.

Bitcoin, the largest alt coin by market cap, dipped 0.3% to $11,708.6 on the Investing.com Index by 11:19 AM ET (15:19 GMT).

Total cryptocurrency market capitalization still increased to $308.26 billion, compared to $301.96 billion a day earlier, despite the drop in its largest member and a selloff in its closest rivals.

In other individual crypto trades, Ethereum fell 2.1% to $224.05, XRP lost 1.4% to $0.31088, Bitcoin Cash declined 1.5% to $337.18, while Litecoin traded down 3.7% to $91.506.

Trading in bitcoin, which is accustomed to the volatility associated with large percentage moves, seemed subdued when compared to the plunge in sovereign bond yields of more than 5%.

Both the U.S. 10 and 30-year yields were tumbling as bond prices soared. Central banks in New Zealand, India and Thailand all cut interest rates by a wider-than-expected margin as they struggled to offset a global slowdown.

Concerns over economic weakness worldwide sent investors running to safe-havens such as bonds, gold, the Japanese yen or the Swiss franc, while risk-off sentiment sent the Dow down more than 1%.

Although the debate over bitcoin’s value as a store of value remains unresolved, some analysts argue that volatility in traditional financial markets can benefit cryptocurrencies as an alternative asset.

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