Bitcoin Relations With S&P500 Push The Price Below $11,000

Bitcoin relations with the S&P500 have brought the price of the flagship cryptocurrency below the $11,000 as we are reading in the coming altcoin news below.

Bitcoin entered the day trading sideways below the $11,000 price point where it had more or less remained the same since the sell-off on Saturday that followed the brief BTC foray above $12,000. The things fell apart around 10 am ET when the Bitcoin price dropped below the $11,000 and breached the lowest level since August 4. As of 10:35 the BTC/USD pair fell even below the $10,863 price point on Bitstamp. The number one cryptocurrency was trading at $10.909 after the 24-hour decline of 3.45%. The bitcoin price decline was joined by a massive rally on Wall Street. The Dow Jones Industrial Average surged by more than 500 points and the S&P500 increased up to 1.84%. Nasdaq as well cleared the 8,000 level with a 2.32 bounce.

The bitcoin relations with the S&P 500 were created a long time ago in an inverse motion. When the stock market falls, bitcoin rises and vice versa. The crypto investors cheered that the inverse correlation could send the major stock indices into a tailspin but this wasn’t welcomed at the beginning of the day. As explained in the charts, the S&P500 spiked more than 1.5% as the bitcoin price reached a new low level of equivalent magnitude. The trigger for both moves could have something to do with Trump’s administration’s stunning revelation that he will delay the new tariffs on the imported Chinese products until December 15 and exempt other items from looming the new imposition on the tariffs altogether:

“Certain products are being removed from the tariff list based on health, safety, national security and other factors and will not face additional tariffs of 10 percent.’’

As noted in the latest cryptocurrency news, the United States President Donald Trump previously announced that about 10% of the tariffs on $300 billion worth of Chinese goods would kick in on September 1 and some analysts even warned that the White House could hike these tariffs to 25% in the coming months. His announcement spiked the stock market towards a vicious sell-off and the bitcoin price into a huge rally as the days followed.