The reasons for the new fall in the bitcoin rate

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The actions of the owners of large wallets.

The reasons for the new fall in the bitcoin rate

After falling to $ 44,892, the price recovered almost 16% to $ 51,530. The upward correction was 50% of the fall from $ 58352 to $ 44892. It took 2 days (51 hours) to recover. The price climbed to $ 51,530 on the news that the US Securities and Exchange Commission (SEC) approved the application of the Coinbase cryptocurrency exchange for a direct listing of shares. Buyers got into turbulence on Thursday (February 25) in the American session. Sellers dropped the rate to 46 thousand, at auctions in Asia - to 44106.

The rise in the yield on 10-year US government bonds (US Treasuries) caused a rally in the dollar and a massive sell-off in shares. And they have already provoked a weakening of major currencies and bitcoin with alts.

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US Treasuries

The yield on 10-year US government bonds climbed to 1.56%, exceeding the S & P500 index's dividend yield of 1.52%, following weak demand at the $ 62 billion 7-year bill auction. Tech stocks hit hard as yields rose. The S & P500 fell 2.45%, while the Nasdaq Composite declined 3.52%. The Nasdaq index turned out to be sensitive to the rise in bond yields.

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S&P 500 Dividend Yield - (12 months dividend per share) / price.

Today, the yield has declined to 1.47% per annum (current value is 1.487%). The dollar continued to advance on all fronts. S & P500 futures are down 0.6%. If the cue ball had not fallen on February 23, then it was able to survive the growth in profitability well, because for it it has a high correlation with it (0.93). The connection began to strengthen since November 2020. I think this is due to the fact that he became a defensive asset against inflation and increased demand from large companies for him. See the graph below.

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Bitcoin and US10Y yield

Posted Using LeoFinance Beta



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