In a reversal of some of the Bitcoin news that we’ve seen earlier this month, tech analysts are now showing a decrease in Bitcoin value below the $9000 mark and a rise in U.S. stock futures.
Today at Coindesk, Omkar Godbole looks at the deflation of Bitcoin after a wild week-long rally that had brought coin value up toward $10,000.
“(BTC) prices rose to a high of $9,010 at 08:05 UTC, but quickly fell back below $8,900, pouring cold water over excitement generated by Monday’s 2.3% bounce from the two-week low of $8,630,” Godbole writes.
The other part of this is calming of the turbulent waters that had traders looking for any lifeboat in the earlier days of coronavirus activity.
“The futures tied to the S&P 500, Wall Street’s equity index, are reporting over 2% gains Tuesday,” Godbole writes, noting that oil is up, too. “Major European equity indexes are flashing green, too, with the U.K.’s FTSE index leading the way with a 1.33% gain, as per Investing.com. … Risk sentiment seems to have been buoyed by reports of a potential coronavirus vaccine. U.S.-based biotech company Novavax said on Monday it is beginning a phase 1 clinical trial of its COVID-19 vaccine candidate in Australia. Results are expected in July.”
It seems that the markets are easing based on emergence of a potential coronavirus vaccine and partial reopenings where we imagine that the worst blows to our economy are now behind us.
Americans cross their fingers and wait to see how many small businesses can reopen, and how many dreams have been deferred by the sudden pandemic crisis.
Amid this volatility, Bitcoin has been seen by some as a safe haven for capital. It’s not tied to the US market – that’s evident. However, Bitcoin does have its own volatility and risks.
As the professional people like to say: investment carries with it the risk of loss of principal.
As for who’s selling, it might be the miners.
“Whether miners are selling more than they mine because BTC is above the breakeven cost of mining in China or over-leveraged miners are capitulating remains unclear,” writes Joseph Young at Cointelegraph. “But, the data points show miners were most likely leading the sell-off of Bitcoin in the $9,300 to $9,400 range, along with retail investors on Coinbase moving to sell BTC.”
