On November 10, at the end of the day, bitcoin fell by 3.08%

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On Wednesday, November 10, at the end of the day, bitcoin fell by 3.08%, to $ 64882. The daily price range was $ 6177 or 8.95% of the top. It was by this amount that the bitcoin rate fell after updating the maximum by $ 69,000. Now everything is in order as the events developed on the crypto market.

The surge in volatility in the market jumped at 16:30 Moscow time after the release of statistics in the US. The data showed a significant acceleration in US inflation in October. In October, the consumer price index in the United States rose by 6.2% - a record value since November 1990.

The data triggered a rally in dollar, gold and bitcoin. The dollar rose in price as investors began to expect the Fed to raise rates earlier than previously expected. The spread between US and German government bonds has increased.

Gold and bitcoin have risen in price along with the dollar, as investors see them as defensive assets against inflation. Gold rose in price by 2.29%, to $ 1868, bitcoin - by 3.92%, to 69 thousand. The XAU / USD pair rolled back after renewing the maximum, but it remains trading near the weekly and multi-month highs. Bitcoin was unable to hold the height and swooped down to the $ 62,822 level. The fall was 8.95%.

What is wrong and why did the price crash?
Several factors coincided here that influenced risky assets.

  1. Before the release of the inflation report, it was reported that the Chinese real estate giant Evergrande may default on the payment of bonds in the amount of USD 148 million.

  2. Then there is a message that Deutsche Markt Screening Agentur (DMSA) has published an announcement about the preparation of bankruptcy proceedings against Evergrande. DMSA has invested in Evergrande bonds whose grace period expired today (November 10, 2021). No payment was received, they wrote that Evergrande had officially defaulted.

  3. The dollar strengthened sharply after inflation data, while major currencies collapsed. US stocks also fell as Evergrande's troubles could spill over to other countries. Cryptocurrency is a risky asset, so buyers began to take long profits after negative news.

  4. A decline began, a new piece of negative information appeared that the price of bitcoin could be threatened due to the collapse of the stock market and because of fears that almost half of Tether's reserves consists of commercial papers worth almost $ 30 billion.

Agree that with such an external background, it is uncomfortable to be in long positions. Today is a day off in the USA. The debt market is closed. The dollar index reached a new high. At the same time, the bitcoin rate recovered to 65600, ether - to 4743. Buyers follow gold, despite the strengthening of the dollar.

The first signs of a correctional movement appeared on the foreign exchange market. If the correction in the major pairs increases, then nothing will prevent Bitcoin from returning to the $ 67,000 level, because it really is a defensive asset against inflation. If the day closes above 67 thousand, then we are waiting for the renewal of the maximum. There were no dramatic changes at the daily TF. The bullish trend remains strong.

Posted Using LeoFinance Beta



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