Bitcoin fell with US President Donald Trump’s announcement that it was Kovid-19, and markets are now wondering about Trump’s health. Future news is expected to have similar effects on Bitcoin and stock markets. In the analysis he published, a trader said that after the events, the relationship between Bitcoin and gold broke down and that the main relationship was with stocks.
The downtrend that came with the US President Trump’s capture of the Covid-19 virus and the CFTC’s accusations against BitMEX owners affected the markets. With this decrease, the Bitcoin price, which declined to around $ 10,400, was prevented from falling further with the support established in this region.
Bitcoin accompanying the stock market
After the recent news shook both cryptocurrency markets and traditional markets, the drop in Bitcoin price was less than expected due to the resistance of the bulls.
Although Bitcoin lost value on a day-to-day basis, it managed to rise to $ 10,515 after falling to $ 10,400. The course of the crypto money market is expected to be affected by the stock market in the medium term. According to Skew data, the correlation between Bitcoin and the S&P 500 Index is close to 50%. This rate was over 60% at the end of September.
According to the cryptocurrency trader named Smart Contractor, the fact that Bitcoin accompanied the stock market after the Trump news proved that Bitcoin is closer to the stock market than the gold market.
So what awaits Bitcoin?
While Bitcoin is partially aligned with the S&P 500, important things await the stock markets this week. Julian Emanuel, one of the BTIG executives, said this week that the most important thing that will affect the markets will be Trump’s health. He explained that even “how often he tweets” could affect the market.
Meanwhile, the investor is waiting for news about the 2.2 billion dollar stimulus package prepared in the USA. T3live partner Scott Redler said that because of this uncertainty in the markets, people “could not take a large amount of long or short positions”.
While this uncertainty in the markets continues, Bitcoin investors continue to look with fear at the $ 9,600 CME gap. Some traders started to warn that Bitcoin could fall below $ 10 thousand.