Bitcoin lost 2% in the last 24 hours, falling to the 10.400 band. So why did Bitcoin fall and what do experts say about the future of the leading coin?
Bitcoin could not sustain the rise it caught after the bearish wave in early September. The price of Bitcoin, which took a downward dive again, not exceeding $ 11,000, fell by about $ 500. The 3 main reasons for this decrease can be listed as follows.
- The escalating coronavirus cases caused panic in the markets: although European stocks started to recover, the S&P 500 fell 6.3% since the beginning of the month. Acting in harmony with SPX throughout the pandemic, Bitcoin was also affected by this decline.
- The interaction of the VIX index, which measures the 1-month volatility in the SPX index, and the Bitcoin price: Values showing the range of 21-30 in the VIX index are interpreted as results indicating the presence of stress in the market. The VIX index, also known as the “fear index”, made its opening today over 30. This is a sign that the risk level is high and the investor is hesitant.
- The prolonged negotiation process of the US stimulus packages: As this process extends, uncertainty in the markets and tension on investors are increasing. The aid packages, which are expected to be decided, will be discussed at the congress to be held today. Both the US Treasury Secretary and the Fed Chairman will make speeches at the upcoming congress. It is thought that the decisions made here will also affect the Bitcoin price.
What Experts Say
Blockfyre and Moonrock Capital manager Jonathan Habicht emphasized on his social media account that everyone was cautious in their investments because they feared a scenario similar to the March when the coronavirus epidemic started globally. Bitcoin dropped from $ 7,000 to $ 4,000 a day in March. Habicht thinks a resurgent pandemic wave will not affect Bitcoin as in March. Jonathan Habicht adds that he will evaluate a possible drop in BTC with a “buy low” strategy.
Famous cryptocurrency trader Scott Melker hinted at a “long-term investment” for Bitcoin in his statements today after the BTC drop. Trader, who has about 125 thousand followers on social media, told his followers, “Do you believe that the BTC price will be higher 1 year from now? Well, 10 years later? ” asked. Melker called for “if you think it will rise, buy and wait”, referring to those who react too negatively to short-term dips.
Dutch crypto analyst and trader Michael van de Poppe criticized the negative atmosphere that emerged after the withdrawal of Bitcoin. Cyrpto Michael believes that negative comments on social media after the BTC drop prevent Bitcoin from going up in the short term.