Why is the bitcoin price, gold and stock market falling?


Along with the gold and equities markets today, Bitcoin has also experienced a decline. While the leading crypto money dropped to the level of $ 11,100, gold tested $ 1900. How did the falls come?

Today, the markets are experiencing a new wave of sales. Gold lost more than 6 percent of its value during the day, while Bitcoin fell 5 percent. There were also decreases in stocks.

The drop in the price of gold came after Russian President Vladimir Putin announced that the vaccine developed against the coronavirus was registered. Putin also said that the vaccine, whose name was described as “Sputnik”, was tested on his own daughter.

Ounce of gold, which was traded at $ 2030 during the day, was withdrawn to $ 1901 after Putin’s statement. The price of gold has experienced a significant rise recently, when cases have started to increase in many countries.

Bitcoin started to decline in almost the same time period as gold today. The decline in the leading cryptocurrency with its market capitalization has intensified after the news from the USA.

Incentive package talks bogged down

Stocks have plummeted as Senate Republican leader Mitch McConnell said no talks on a new economic stimulus package had been held since Friday, and soon dropped hopes for a deal. While the S&P 500 Index lost close to 1 percent in value, the decline in Bitcoin that started during the day deepened to the level of 11 thousand 133 dollars. The Nasdaq Composite Index, which broke a record on Friday, also fell about 2 percent.

Speaking to the Financial Times on the matter, Prudential Financial’s chief market strategist Quincy Krosby said that the markets expect an agreement to be reached within one to two weeks, and the latest development is worrying.

See Also
Twitter CEO explains that Bitcoin is the best internet money

Selling profits is one of the drivers of the decline in Bitcoin, according to Chris Thomas, head of digital assets at broker Swissquote, speaking to CoinDesk. “The market is falling due to some traders looking for short-term profits,” says Thomas. he says, warning that there are signs that the withdrawal could continue in the short term.

In the minutes of the publication of the news, Bitcoin is traded from 11 thousand 230 and ounce gold from 1912.


Please enter your comment!
Please enter your name here