Bitcoin extends gains to 4-week high as US-China trade war escalates

Bitcoin jumped more than 4% in spot trading on Tuesday, extending gains for the 8th straight day, to reach a 4-week high, after breaching the $12,000 barrier, as investors' demand increased on it as a safe haven, to shelter of the United States and China escalating trade war.

On Bitstamp, Bitcoin rose by $498, or 4.2%, retching $12,298, which is the highest price since July 10th, from the opening price today at $11,800 while the lowest price at $11,500.

Yesterday, Bitcoin jumped by 7.4%, its 7th straight daily gain, which is the longest daily gains streak in 2 months and the biggest daily gain since July 18th, following Chinese yuan's sharp drop.

The total market cap of cryptocurrencies on Tuesday jumped by more than $5 billion to a total of $316 billion, showing the highest jump since July 13th, while most the major cryptos in the market rose led by Bitcoin.

Bitcoin dominance over the crypto market's trading jumped to 68.5% today, hitting its highest since April 2017, as investors' demand increased on it as a safe haven, to shelter of the United States and China escalating trade war.

In the largest retaliatory response from China to the US and its tariffs increase decision, China allowed the yuan on Monday to fall below the $7 mark, which is happening for the first time since the 2008 global financial crisis.

Which has led to investors shifting towards safe-haven assets and cryptos, taking shelter of the high risks in the volatile financial markets.

Mike Novogratz, founder  and CEO of Galaxy Digital, said that the volatility in the global economy and the geopolitical tensions have led to Bitcoin holding the current levels.

Meanwhile, the US Federal Reserve is planning to launch a Faster Payments Service which provides near real-time payments 24/7, to develop the country's payment infrastructure.

The Federal Reserve has demanded from the US federal banks to develop a new interbank realignment service to support faster payments in the United States, which will be called the FedNow, and is scheduled to lunch in 2023 or 2024, According to a news article released yesterday.

FedNow will allow transferments around the clock, on weekends and public holidays, and will be available to both individuals and institutions.

The Fed is aiming to build a fast, secure and reliable US payment network, which aims to limit the need of new technological innovations and limits the need to use digital networks for transfering money.