Bitcoin modestly followed for S&P500

After a short dip below $9K, the bears no longer tried to pressure the benchmark cryptocurrency. Buyers supported the coin and combined with the 34% increase in trading volumes. This leads to 5% Bitcoin to $9,550 on Tuesday morning.

This looks like a good result, but it seems like the support momentum has already dried up, while the coin has not even approached $10K. The price dynamic coincided with the upward reversal of the stocks, but the cryptocurrency move was much more modest.

While at the beginning of the year the geopolitics had a rather favourable effect on the cryptocurrency, now there is such a factor in the game that negatively affects almost all assets. Expectations of a second wave of the epidemic will only support selected assets, because who will need Zoom for working conferences if there is no work? Who will support retail if there is no money to buy? Bitcoin, which has become a mostly speculative asset in recent years, is not in the first tier of the institutional investors’ portfolio so that it may lose momentum from this side as well.

The FxPro Analyst Team