Bitcoin’s dumping continues ahead of the FED meeting with the profit-taking sentiment troubling the benchmark cryptocurrency as the fall is going on for three days now. let’s see what’ the fuss is all about in our recent Bitcoin news today.
The BTC/USD exchange rate dropped to 4.33 percent to reach an intraday low of $53,221 and the downhill move came as a part of a broader bearish correction which started after it refreshed the all-time high of $61,778 on Saturday while the BTC/USD rate slipped by 13.87 percent from the peak level. Bitcoin’s latest drop came in contrasts with the traditional markets and in the US, the stocks saw a closing record with the S&P 500 adding 0.6% to an all-time high of 3968.94. The Nasdaq Composite surged 1 percent to 13459.71 but then failed to log a new high such as the S&P500.
In the meantime, Dow Jones surged 0.5% to 32953.46 to post a 14th record close of the year. BTC formed a new positive correlation with the Wall Street indexes and the cryptocurrency was among the remaining assets that posted a new growth against the lower debt yielding environment. The yields started recovering sharply and investors decided to move into the safety of the US dollar that caused BTC and other altcoins to flip lower. The yield on the US-10 Treasury note dropped by 0.02 percent on Monday but remained near the 13-month peak of above 1.64% with the US dollar rebounding against a basket of top foreign currencies closing on a 0.16% higher, giving some light on the BTC market.
The two-day meeting of the FED panel will attract some more scrutiny from the BTC traders after the sharp reversal on the Treasury market so while the rates remain low, their rise is bringing more concerns over the FED dovish policies. The US central bank was purchasing some government-bonds and mortgage-backed securities but it maintained the benchmark interest rates to zero and made it cheaper to borrow the US dollar. the higher bond purchase reduced the appeal of holding the debts by lowering the yields while the cheaper dollar loans pressured the dollar lower.
Bitcoin’s dumping continues however but we can expect people to invest their new stimulus check into the cryptocurrency and see the coin surging again.
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