The Bitcoin price (BTC) fell below USD 9,000 from USD 9,660 in seven hours. The 7% drop occurred when USD 55 million of long futures contracts were settled on BitMEX.
It is likely that four factors are behind the sudden drop in the price of the main crypt currency by market capitalization. These are: falling stock prices, selling pressure from miners, a long period of low volatility and the repeated rejection of the USD 10,000 level.
Bad day for stocks and Bitcoin
Stock futures opened slightly higher on Wednesday night, after a strong sale during the regular market session with the Dow falling 2.72%, its worst day in two weeks.
As is regularly reported, the fall of Bitcoin Rejoin and cryptosystems in global markets is a common theme in recent months. The one-year correlation observed between Bitcoin and the S&P500, for example, has shot up in recent months to nearly 40%.
As analyst filbfilb pointed out last Friday, from a technical point of view the market remains generally bullish despite consolidating below the USD 10,000 resistance level.
However, he warned that:
„Short-term price action remains largely at the mercy of the overall economy, particularly as Bitcoin consolidates at a low volume.“