Bitcoin fell by 3.09 per cent and reached in early Trading on Monday to an Intraday Low at 8.633 $ – a day after BTC and a maximum at 9.203 $ had reached. The downward movement reflected the inability of the Trader to keep a Bitcoin support in the vicinity of $ 9000 is, in particular, is the halving of the Block reward.
12. May decrease the Bitcoins daily offer rate of 1,800 BTC to 900 BTC. Traders believe this will make the crypto currency more scarce and thus more valuable.
A popular price prediction model predicted until the end of 2021 even with a Bitcoin price in the amount of $ 100,000.
However, traders are still climbing out of their crypto-positions in order to achieve short-term gains. This downward mood comes after Mike Pompeo, U.S. Secretary of state, the claims Department of homeland security on the role of the Chinese government of concealing the Severity of the Coronavirus has repeatedly.
Trade tensions between the US and China
On Sunday, Mr. Pompeo told ABC that Beijing had, in January, medical supplies, without taking into account the possible effects of Covid-19 to the Rest of the world.
“We can confirm that the Communist party of China has done everything they could to ensure that the world learned of what was going on.”
Pompeos explanations suggest that the tension between the United States and China is on the rise again. This was evident in the exchange rate of the Renminbi in early Monday trade. The RMB fell by 0.3 per cent to 7,1561 per US Dollar- the lowest level in 45 days. The chief economist of ING, according to Robert Carnell, could serve to decrease as the Signal for a trade war between the US and China.
“It is possible that the U.S. government encourages the commercial rhetoric to resume, as the shares have experienced in the last weeks of a rally,” he told FT.
The S&P 500 Index has so far responded negatively to the news. He fell for the second week in a row, while the futures market wants to start the new week with red Numbers.
The correlation to Bitcoin
The downside risk of the S&P 500 could expose Bitcoin in view of its short-term positive correlation with the crypto-currency, a rate of decay.
As Liz Ann Sonders, the senior investment strategist of Charles Schwab & Co., noted at the beginning of may, the U.S. Benchmark, was full of “Zombie”Assets, whose shares have risen despite a lack of profits. The Inflation of a so-called company is a debt bubble that will soon burst and the S&P 500 crash could bring.
The losses in US equities prompted investors earlier to cover their Margin debt through the sale of everything that you hold against cash, including Bitcoin. The crypto-currency plunged during the trading from the 12. to 13. May, by more than 50 percent from what many of gives a frightening picture of the influence of the traditional markets.