Bitcoin extended its bearish correction at the start of this week, falling briefly below $9,000 for the first time in three weeks. The stock market also opened in the red, dropping over 3%.
June 15 2020 | AtoZ Markets – Bitcoin (BTC) led the cryptocurrency market in red turbulent waters on Monday. The flagship cryptocurrency dived below $9,000 for the first time in June. The latest bearish move follows a difficult week for Bitcoin in which markets almost regained $10,000 before shedding $800 in a matter of hours on Thursday.
Bitcoin proves that its correlation with the stock market is not a passing haze
BTC ousted stability as volatility increased amid a stronger bearish grip. Prices on leading derivatives trading platforms plummeted to lows around $8,920. Spot trading platforms also experienced a fall of the same magnitude. Currently, Bitcoin price was down 2.2% on the day to trade at $9,118.
Less than 2 hours, about $20 million worth of long positions have been liquidated. This according to data provided by the analysis platform, Skew.com. In addition to that, in the last 24 hours, $10 million more in long positions had been liquidated.
As mentioned, the losses are spread across the crypto landscape. For instance, Ethereum is trading 3.54% lower with a market value of $223. Ripple has also not been spared and is doddering 2.98% lower on the day to trade at $0.1845. The rest of the digital assets are nursing losses ranging from 1% to 6% on the day.
Bitcoin price tanks in tandem with the stock market
Bitcoin recently established a correlation with the stock market has also been witnessed with a fall stock market. Most futures of American equities opened the week’s trading in losses. The S&P 500 futures and Bitcoin traded in tandem with the equities towards the end of the trading on Sunday. Futures were down 3% on the day since opening which means Bitcoin has started to lead the recovery.
“Once equities correct strongly, odds that $BTC sees a correction too is large. Simple math, increased demand for cash may have its influence temporarily,” according to an analyst who predicted a V-shaped reversal from the devastating March crash.
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