Monday syndrome in Bitcoin: Why is the price falling?

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Bitcoin price has retreated about $ 500 today. This decline in the biggest cryptocurrency came with a wave of sales triggered by the resurgence of epidemic fears in European markets.

The number one crypto currency, which spent the weekend close to $ 11,000, faced sales pressure on the first day of the week. Bitcoin, which opens the day at 10 thousand 920 dollars, was withdrawn to 10 thousand 560 dollars and is traded at 10 thousand 600 dollars in the minutes of the news.

Why is Bitcoin falling? The leading cryptocurrency’s decline came simultaneously with the decline in stocks. The US dollar’s increase along with the decline in European stocks and US stock futures was instrumental in the withdrawal of Bitcoin.

Major European indices such as DAX, CAC, and FTSE fell more than 3 percent. A decrease of more than 3 percent was also observed in the markets of Italy, Spain, Belgium and Austria.

While the dollar index rose 0.5 percent, futures linked to the S&P 500 index lost about 2 percent.

Fear of coronavirus in Europe

This sale in the markets occurred out of fear created by the second coronavirus wave that broke out in Europe. According to the European Center for Disease Prevention and Control (ECDC), the daily number of cases in the European Union and the UK this week broke a new record, exceeding 45 thousand during the 14-day reporting period. In countries such as Spain, Bulgaria, Croatia, Malta and Romania, death rates began to rise.

On the other hand, it is stated that the cases in the UK doubles every seven days and if the trend continues, there will be approximately 50 thousand new cases per day until mid-October.

See Also
JP Morgan Analyst: Bitcoin Can Compete With Gold

According to Glassnode, who finally provides data on cryptocurrencies, the flow of BTC from Bitcoin miners to exchanges has gained momentum in recent days.


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