Bitcoin (BTC) prices are at levels that were unthinkable three months ago.
As of the publication of this article, Bitcoin is trading at $72,500, as seen by the CriptoNoticias price calculator. The digital currency is just shy of $70,000, a psychological barrier that could act as a support zone.
The following graph shows that BTC movements in the past 12 months:
This behavior of Bitcoin is not an isolated phenomenon, but rather Strong correlation with the US technology stock sector.
loss Wall Street traders are runningAccording to Bloomberg analysis, “Asset rotation”leaving the tech giants that were previously seen as a safe bet to pursue other opportunities or take refuge in cash. As a result, risk assets, including Bitcoin, are under significant selling pressure.
The fall in Bitcoin prices was further deepened by the collapse of the Nasdaq 100 index, which fell more than 1.5% following a wave of mass selling by chipmakers and software companies.
For Miller Tabak’s Matt Murray, it’s not uncommon for declines to spread throughout the stock market.
Of course, we’ve been saying for some time that if the tech sector were to suffer a broad decline and the various groups within that sector were to decline all at once, the stock market as a whole would have a very difficult time sustaining itself in such a scenario.
Matt Murray, Miller Tabak CEO
In this scenario of risk aversion within the technology sector, Bitcoin is “swimming” along with the macroeconomic trend, extending its downward trend That would punish the technology sector today.
I can’t help but mention: Tensions rise between the US and Iran And the possibility of American forces attacking countries in the Middle East cannot be ruled out. This potentially war-like shock will cause investors to become more cautious and move away from more volatile assets.
To this, Appointment of the next Federal Reserve Governor US. As reported by CriptoNoticias, Kevin Warsh is a Bitcoiner who appears to be sympathetic to President Donald Trump’s desire to lower interest rates. In any case, in the past, they have taken actions that support financial regulatory policies. There are growing doubts in the market about what will happen in the end.
