- The Price of Bitcoin (BTC) had a sharp fall and the value is decreased by 18% on the 24th of September
- On the 24th of September, the U.S. Stock Market also experienced a similar price decrease which brings the whole market in the bearish trend.’
- Similar circumstances in two different markets left everyone amazed, where some analysts are trying to find out the correlation between bitcoin and the stock market, while others believe it’s just a mere coincidence.
The cryptocurrency market is uncertain and it is very clear, Bitcoin which is doing really well at the start of the year and now, unfortunately, the currency is decreased by 18% on the 24th of September. On the other hand, interesting the U.S. Stock Market has experienced a similar price decrease and this put a question mark on the Bitcoin’s position like a safe haven?
The Bitcoin bearish movement is one of the hot trending topics of the industry, crypto analysts and experts are predicting that the Bitcoin will surely go up in the market soon and it will receive bullish momentum by the end of the year.
On the other hand, most awaited Bitcoin futures of Bakkt is also settled in the market and the news of the ETFs is also indicating the flow of the corporate money into the cryptocurrency market and in cryptocurrencies. Currently, still trading at the value of $8,089.30 at the time of writing.
The drop in the value of Bitcoin beneath $8k and everyone in the market got worried that the currency will definitely go further down. Many of the investors and people in the community think that it is the hash rate of the Bitcoin is caused the decrease in the value of the Bitcoin. As per the Blockchain.com’s data, the hash rate decreased on 24th September.
The hash rate decreased up to 67 M TH/s from the 98 M TH/s in a very few seconds of time. Hashrate is the measurement of the speed by the Bitcoin’s functioning is finish in a time period, but it eventually got up in the time period of an hour. On the other hand, some of the investors and traders in the market started to sell the bitcoin and thought that it was a bearish signal, however, some of the traders still strongly believe that the currency still has many opportunities in the market. This bearish movement is just a phase and nothing else.
The people in the market blamed this decrease in the value on a lot of things including the trade war between China and the U.S. and also on the Bakkt’s bitcoin futures. The people have thought that Bakkt will change the market condition for Bitcoin and it will bring the value of the currency above the value of $10k.
Many experts and analysts in the crypto community made fun of the anticipation of the Bakkt in the mind of the people. The eToro’s senior market analyst, Mati Greenspan said that this is a perfect example of the
“buy the rumour, sell the news.”
Also the CEO of the Celsius Network, Alex Mashinsky also said that the failure of the Bakkt’s shows that the government institutions are still not ready to invest in cryptocurrency and Bitcoin.
Another comment came from Greenspan and he said that there might be a relation between the ma moves of the stock and bitcoin or cryptocurrency market. He said in his tweet,
“I know it’s an uncorrelated asset but this is a really strange coincidence.”
While other users of Twitter said that this might just be a simple concurrence that the stock market also crashes after the crash of Bitcoin’s value. On the other hand, Reddit users also said that it is just a mere coincidence and nothing else because of the currency decreased by 14% and the U.S. stock market decreased by 1%. This is a big difference and Bitcoin lost was a lot then U.S. stock market. The chart shared by Greenspan on Twitter is also of a short-time period.
However, it raised some suspicions in the crypto market and if that of the market, U.S. stock market, and crypto market get a bounce at the same time then the suspicion will become more strong that these two are related with each other.