On Tuesday, September 9, the BTC/USD pair declined by 0.86% to $66947. After a 14 percent increase, buyers took a break. Avoiding risk caused the strengthening of the dollar in the global currency market, which also negatively affected cryptocurrencies.
On Wednesday, November 10, the bitcoin exchange rate dropped to $66222. Buyers hold the defense at this level for 19 hours. To continue the rally, the BTC/USD pair needs to close the day above $67800. This will allow buyers to neutralize the “bearish” sentiment. If the dollar cannot continue to grow after the release of inflation data in the US, we expect the maximum to be updated by the end of the week.
In the review, I touch on the stock and currency markets.
The fact is that bitcoin belongs to risky assets. Accordingly, sharp fluctuations in currency pairs with the dollar can affect the bitcoin exchange rate, as well as its fall/growth can affect the foreign exchange market. Bitcoin has a high correlation (more than 0.7 in the last 90 days) with the euro, Australian and New Zealand dollars since the beginning of the year.
We also do not forget about how bitcoin collapsed by 63%, to $ 3782, behind the American stock market in February-March 2020. After the collapse, the cue ball had a close connection with American stock indices. Now the correlation of bitcoin with the SP500 futures is 0.62.