The price of Bitcoin has been under immense selling pressure in the last few days.
This is mainly due to the revelation of several pessimistic news events.
These events – including the BitMEX problem and President Trump’s health – have led many analysts to expect further significant declines in the coming days and weeks.
They have also caused Bitcoin to break its previous correlation with gold and to resynchronize with the stock market.
If this trend continues, it could hinder the growth of Bitcoin Superstar and the aggregated crypto market in the coming days, weeks and months.
Bitcoin and the aggregated crypto market received a severe blow when stock futures crashed on news that President Trump was infected with the deadly virus.
Nevertheless, the crypto currency has shown surprising resilience in the face of this bearish news – and the cops were able to prevent it from sinking below support at around $10,400.
This latest drop came shortly after news of the CFTC’s decision to indict the owners of BitMEX for violating several laws.
However, BTC is only about 5% below its recent highs and is currently even showing some subtle signs of technical strength.
Bitcoin recovers – cops try to regain control
Recent news events that have shaken both the crypto sphere and traditional markets have undoubtedly been bearish for Bitcoin, but the price of the crypto currency has not reacted as many had expected.
At the time of writing, Bitcoin is being traded down less than 1% at its current price of $10,550 USD. This represents a remarkable increase from the recent lows of $10,400 set at the bottom of the recent market-wide sell-off.
Where the crypto-currency trends will lie in the medium term is likely to depend somewhat on the equity market, which is currently falling.
BTC breaks its correlation with gold
A declining trend that has emerged as a result of Bitcoin’s recent price decline is the firm decoupling from gold – as BTC begins to closely monitor the stock market.
One analyst estimates that this does not bode well for BTC. He writes:
„Gold is pumping, BTC falls with this news. I think we agree once and for all that BTC is not correlated with gold, but with stocks, no hacking and changing whenever it suits us, that’s the way it looks now“.
Whether this correlation becomes stronger or begins to dissolve in the near future should provide significant insight into Bitcoin’s short-term outlook.