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Bitcoin (BTC) back under $20,000 for the first time in ages

The $20,000 level isn't holding. Here are the reasons for the selloff in the bitcoin and crypto markets.

By Finst News
• 2 min read
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Bitcoin (BTC) back under $20,000 for the first time in ages

The $20.000 holds? Just kidding, but the $20,000 level isn't holding. Here are the reasons for the selloff in the bitcoin- and crypto markets.

The psychologically important Bitcoin price level of $20,000 didn’t hold this weekend. Bitcoin is currently trading under $20,000.

This marks another low in a negative rally that has been underway since mid-August. Digital gold is now 71 percent below its all-time high of $69,000.

The reason for the ongoing downtrend in the Bitcoin market is the strong correlation with the stock market — and there, investors have little to smile about either. Currently, the correlation between BTC and the S&P 500 is 0.49. That’s roughly four times higher than in the same period last year.

The Nasdaq-100, the leading US tech index, was down 4.1% in premarket trading. The backdrop to the stock-market selloff are statements from Fed Chair Powell that the restrictive monetary policy in the US will not be rolled back for now.

Investors took negative prognoses for risk assets and sold tech stocks and cryptocurrencies.

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