Bitcoin’s struggle to reclaim $10K came to an abrupt end as the price suddenly dropped to $9,012. Right before the BTC price plummeted, pre-market data of the Dow Jones Industrial Average (DJIA) indicated a 900-point drop.
June 11 2020 | AtoZ Markets – Global stock markets are tumbling today as fears of a second coronavirus wave grow stronger. Reports have it that there’s a rising trend of new cases in the US and across the world, and this has evidently taken its toll on the economy as well.
Equities tumble amid fears of a second wave of COVID-19
The World Health Organization announced that the coronavirus pandemic is worsening across the globe. The number of new cases continues to spiral on and even reached a new all-time high.
It appears that the reality is starting to settle in as major indices are down a sizeable amount across the board. The S&P 500 lost 4.5% today as it’s currently at around 3,050 basis points. The Nasdaq 100 is also down 3.3% to 9,750 points after breaking over 10,000 yesterday for the first time in history. The other major index, the Dow Jones Industrial Average, is also down about 5.5%.
The above heatmap of the companies included in the S&P 500 best describes today’s bleeding. Every single one of the firms is currently down, and the decreases range anywhere between 1% and 10%.
Price of Bitcoin and cryptocurrencies also dropped
Unfortunately, the cryptocurrency market follows suit. At press time, lows of $9,012 appeared before a modest bounce brought the price slightly above $9,200.
That, however, could be somewhat expected. Yesterday, BTC spiked to $10,000 shortly after the US Federal Reserve concluded its two-day June meeting, confirming the near-zero interest rates for the short- and possibly mid-term. This, according to some, means that the institutional involvement in Bitcoin has increased.
Therefore, it’s probably not a surprise that the asset has once again become largely correlated with the movement of legacy markets and is now in a decrease.
Altcoins are also suffering. All of the large-cap cryptocurrencies, much like stocks, are currently trading in the red, marking notable decreases upwards of 6%.
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