Bitcoin has discovered an error and it could be the corona virus, but indirectly.Aside from the technical weakness caused by failed attempts to hold over $ 10,000, those scratching their heads to explain the ferocity of the price drop could do well to look at Wall Street.
The hammering of the stock markets as a prospect of a pandemic has pierced the bubble of complacency that has enveloped the markets.Two 1,000 point drops for the Dow have certainly caught everyone’s attention, including crypto holders.
Is it the Dow’s fault?
Since the stock markets are in free fall, market participants may have decided with one foot in the crypto space that this was the time to unload. If this was the case and Bitcoin was not a safe haven, it was considered a riskier good, which in turn meant that it was outdoors first.If this is part of the history of energetic retreat on the crypto markets, the opposite could turn out to be the case – if the stock markets stop bleeding, Bitcoin could also get a bid.
President Trump will host a spokesman for the corona virus at 6:00 p.m. EST, which may not offer the soothing balm one can hope for.But maybe the stock sale was a catalytic trigger in contrast to the fundamental driver. So the correlation with stocks is a volatile matter?