Does the Bitcoin price correlate more strongly with the stock market than expected?
Once again, the world’s largest cryptocurrency Bitcoin faces great resistance at $ 10,500. On Thursday June 11th, the bitcoin price already plunged 11% from $ 10,100 to drop to $ 9,012. Although no clear justification for this slump in the Bitcoin price was found, it correlates very strongly with the crash of the Dow Jones Industrial Average (INDEXDJX: .DJI), which also fell on Thursday by 6.90%.This is the second time this year that the Bitcoin price has followed the traditional stock market. The first time was the stock market and crypto crash in March 2020 due to the COVID-19 pandemic. Yesterday’s incident was the second time.
Does the Bitcoin crash have anything to do with Dow performance?
The Bitcoin price fell more than 10% on Thursday, shortly after the Dow Jones pre-trade data showed a value of 900 points. The index opened Thursday with a 3% drop as losses widened up to 7% by the end of the day.Experts believe that the decline in the Bitcoin price cannot really be linked to the market crash on Thursday. Rather, it is the uncertainty across the asset class that has led to the short-term BTC price crash. Apart from Bitcoin, other comparable assets have also declined at the same time. After the initial swing in June, the gold price fell 1% on Thursday.