US Stock Market Directs Bitcoin Direction – What Happens Today?
The U.S. stock market and cryptocurrency market shot up together yesterday as the Dow Jones posted one of the greatest daily gains of all time, while Bitcoin rose over 6%.
All the remarkable rallies that have been seen on the stock market in the past few weeks have been followed by a significant downward movement, which however makes it increasingly unclear whether this dynamic will continue in the coming days and weeks.
If the stock market sees further downward movements over the course of the week, this could create a tailwind that also causes a similar decline in Bitcoin.
Dow Jones registers a massive increase
The Dow Jones could yesterday with a significant increase of 11, 4% recorded one of the largest daily rallies of all time, which after a recent drop to lows within the 18. 000 he region again over 20. 000 points led.
Even though this may be a significant increase, one should not forget that it has seen several similar upturns in the course of its recent downward trend, each one accompanied by significant sell-offs.
Bitcoin recovered in step, as the benchmark cryptocurrency fell to $ 6. 800 rose before encountering some resistance. So far, this resistance has not been enough to catalyze a sell-off, and it is quite possible that investors and traders alike are waiting for the futures market to open up to find out where the stocks are going today.
Since BTC and other digital assets have closely followed traditional markets, it is likely that today's trading session will have a strong impact on Bitcoin.
What was behind the rally and will it continue?
Alex Krüger, a respected economist, recently said in a tweet that he doesn't necessarily believe stocks have bottomed out. Noting that today's rally came from the forthcoming US stimulus package, he noted that President Trump is optimistic that the rapid spread of the corona virus will slow down soon and that portfolio inflows could be rebalanced in the near future .
“Have the shares bottomed out? Possibly. I tend to no. In the short term, stocks are trading with the upcoming US stimulus package, Trump's optimism, and there are talks about large portfolio inflows that could be offset in the coming days, ”he said.
Have stocks bottomed? Maybe. I lean towards no. In the short-term stocks are trading the upcoming US stimulus package, Trump’s optimism, and there are talks of large portfolio re-balancing inflows in the days to come.
– Alex Krüger (@krugermacro) March 24, 2020
If these factors are not enough to prolong the massive recovery of the market today, Bitcoin could continue to struggle to resist the resistance in the top 6. 000 – Dollar region to be overcome, then the entire market down respectively.
Proof of text: newsbtc
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