LIVE MARKETS-Bitcoin as a safe-haven? Not so fast

Reuters
Mar 18
LIVE MARKETS-Bitcoin as a safe-haven? Not so fast

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STOXX 600 up 0.5%

Fed meeting in focus

Oil prices fall

Wall St futures higher

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BITCOIN AS A SAFE-HAVEN? NOT SO FAST

For a long time, bitcoin was seen as the ultimate risk-on trade. It went up when investors were feeling bold and keen on risky assets, and sold off when they weren't.

But the Iran conflict has changed the script. Geopolitical tensions in the Middle East have strengthened the dollar and hammered stocks, yet bitcoin didn't follow the usual playbook and actually rose.

“There’s little direct read-across to the asset class from a surging oil price, which means cryptocurrencies are one of the few areas apart from energy stocks and oil itself that offer some real upside for investors,” said Chris Beauchamp, chief market analyst at investing and trading platform IG.

“It looks like a safe-haven appeal is appearing for cryptocurrencies,” he added.

Bitcoin BTC= pushed through the key $75,000 mark on Tuesday, taking its gains since the war started at the end of February to around 15%.

The recent selloff in cryptos “left the market looking highly attractive at deeply discounted prices, especially with the medium and longer-term fundamentals continuing to point towards ongoing mainstream and institutional adoption,” said Joel Kruger, market strategist at LMAX.

(Stefano Rebaudo)

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EARLIER ON LIVE MARKETS:

SOFTWARE: TIME TO CALL A BOTTOM? CLICK HERE

STOXX EDGES HIGHER AS FED COMES INTO FOCUS, DEFENSIVES LAG CLICK HERE

BEFORE THE BELL: EUROPEAN FUTURES RISE AS OIL PRICES FALL CLICK HERE

TO DOT, OR NOT TO DOT, THAT IS THE QUESTION CLICK HERE

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