BITCOIN

The price of Bitcoin sank as a 10% market break for the macro storm


Bitcoin prices have fallen 10% in a single day in an increasingly dangerous macro climate. Although the ultra-rare cryptocurrency is claimed to be a hedge against catastrophic economic events, it is not clear how it will react when volatile assets eventually arrive.

With the volatile ground and the stock market for precious metals melting further down, is the top cryptocurrency and the rest of its Altcoin brothers going to experience the same bloodshed as Black Thursday? Or is it just a jolt using nervous market sentiment in the aftermath of being a non-event? And what event are we talking about?

The price of Bitcoin fell by 10% along with bearish stock market sentiment

The cryptocurrency bull market has fallen short of expectations, creating a phase of consolidation and putting the market in a state of panic.

Related Reading | New to Bitcoin? Learn to trade crypto through NewsBTC trading course

As if the feeling in crypto from the 50% fall in May wasn’t scary enough, a further 20% flash crash bulls a week earlier had stabilized and set the price. Another attempt this weekend was immediately rejected today with a further 10% fall.

Bitcoin price sank by 10%, but has yet to produce new monthly lows | Source: BTCUSD on TradingView.com

Are the revisions getting smaller, or is there something else going on that could start 10% more? A potentially dangerous macro situation could present a mixed situation for integrated cryptocurrencies.

Dow Jones dives in as dangerous macro storm bruises

Bitcoin prices have already recovered more than $ 1,000 since the bell rang during the official market play on Monday morning. After the weekly close, forced selling started overnight, probably due to the weakness of the stock market.

The macro environment is in shambles, considering the potential catastrophic default of Evergrand, China’s second-largest real estate developer. The default includes the Lehman Brothers-type effect, which is sufficient for the domino effect and potential economic downturn and recession.

The Dow Jones fell 1.87% in the same 24-hour period as the 10% fall in Bitcoin, but the two situations are at the same level due to the infamous volatility of the cryptocurrency. Generally stable metals have also suffered from increased macro insanity.

Dow Jones Stock Market

The Dow Jones its looking heavy | Source: DJI on TradingView.com

The Evergrand situation could eventually turn into another scenario where an unprecedented amount of Fiat currency is printed to cover the real estate giants.

The bailouts were created as an example by Satoshi Nakamoto, who set an example in the genesis block of cryptocurrencies. The headline in the Times reads, “Chancellor on the verge of a second bailout for the bank.”

Related Reading | Bitcoin Golden Cross: All you need to know about bullish signals

These bailouts then saved the stock market and the economy, and the strategy was again used to deal with cowardice. Can the economy withstand another flood of capital? Or will the central banks and governments be forced to take action and let it all fall apart? Most importantly, how does Bitcoin work in any of the above situations?

Follow Ony tonispilotrobTC on Twitter Or through Tonitrade BTC Telegram. Content should not be considered as educational and investment advice.

Featured image from iStockPhoto, Charts from TradingView.com





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