Bitcoin, the world’s best-known cryptocurrency, went above 17,000 dollars to hit a three-year high.
The digital currency has suffered plenty of wild price swings since it was launched in 2009. But investors have been flocking to cryptocurrencies during the pandemic-driven volatility on global stock markets. However, experts have cautioned about viewing them as a “safe haven.”
On Wednesday, Bitcoin climbed over 7% to 17,890 dollars, its highest since December 2017. Some analysts said the Covid-19 pandemic has encouraged investors to reassess the long-term outlook for Bitcoin and other cryptocurrencies.
But there are still concerns about the fraudulent trading in cryptocurrencies following a succession of high-profile hacks.
During times of volatility, investors tend to move their money out of shares and into what are considered safer havens, like cash and gold.
Some feel cryptocurrencies are now being viewed as a shelter from stock market volatility.