Wall Street had one of its worst days on Thursday. Analysts call it one of the most brutal sales. Dow Jones Industrial Average Index or DJX lost more than 1,861 points. The fate of BTC / USD was no different. In 12 hours, Bitcoin fell almost 9.5%. ETH / USD, XRP / USD etc. The situation was the same for many other altcoins like.
Yesterday’s sales were one of the worst sales since March. The U.S. Federal Reserve suggested keeping interest rates low until 2022. This was an indication of how difficult the economy was facing!
Investors suffered tremendous losses in March. They have not yet recovered from these losses. And when they felt that the losses could increase, they panicked. One of the most risky assets, Bitcoin (BTC) has seen a sale for obvious reasons.
Factors Causing Bitcoin (BTC) Accident
The four-hour time frame for Bitcoin (BTC) shows that five of the last six trading sessions are over in red. Here are the possible causes of the decline:
There is a theory in the Financial Markets called Effective Market Hypothesis. Markets explain every positive and negative news. However, what the market cannot fully explain is uncertainty. Currently, both exchanges and the BTC / USD market are in an uncertainty period. Despite the ongoing Koronavirus pandemic, markets have been rising crazy since March. And as soon as the US Federal Reserve made such a statement, the market was mixed. The mess led to panic, which led to sales in Bitcoin and other digital assets.
In the first wave of coronavirus, cash flows dried up and businesses closed. Now there is a fear of another wave of infections. People have broken their BTC / USD assets as much as they can.
Finally, the Technical indicators pointed to a big move in Bitcoin. BTC was in a consolidation phase for a long time. The RSI fell almost vertically. MACD had an important downward crossover. Moreover, the rise of more than $ 10,000 has booked several profits. Thus, different sources fueled the sales pressure in BTC / USD.