Reasons that clearly explains how the price of Bitcoin fell to 6% after reaching $15,800
With an unexpected stock market and the dollar rate that is growing stronger, the price of the bitcoin has dripped down significantly by 6%. There was a significant high of the bitcoin which is around $15,840 which happened just before the crash to $14800. However, five hours after it reached an industry, the cryptocurrency dominance fell by 6%. This massive spike in the volatility seems to have been affected by three crucial factors. The three catalysts for the quick down-trending was the dollar recovery, a fall in the price of gold as Pfizer has spoken that vaccine trials of COVID-19 are creating positive results, and lastly, whales dumping BTC.
Pfizer has recently announced the third phase of the vaccine trails, which is quite balanced and good. The pharmaceutical giant believes that the vaccine is so far proved to be effective to more than 90% in the prevention of COVID-19. The vaccine has been tested on more than 44000 participants so far, and of course, the results we quite good too. The next process would be for the United States Food and Druga administration for conducting the test before it approves the vaccine on the huge distribution and production as well.
Right after the announcement of the vaccine be made, there were an Industrial Average surged1,000 points. This has resulted in the strong U.S. stock market rally. Since the U.S. dollar and stocks triumphed, the old and bitcoin as well dwindled simultaneously. a full-time trader at the Amsterdam Stock Exchange Michaël van de Poppe also highlighted the U.S dollar recovery index and also advised that the alternative stories of price such as Bitcoin and Gold are price as opposed to the dollar. This means if there is a recovery of the dollar then the price of BTC could fall alongside steeple with precious metals.
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CBW - External Analyst
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