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Thursday, October 6, 2022

How Bitcoin’s Strong Correlation To Stocks Can Trigger A Drop To $8000

Investors from all over the country fear BTC prices might trigger a stock drop due to high inflation rates in recent years.

The Bitcoin prices in the last few months will reflect nothing much than a bear market. Now, it is not a secret that bitcoin, or crypto for that matter, has been incredibly low since reaching $48000 last March. The downfall of the market has got the investors worried.

Traders And Investors Are Afraid Of The Bearish Bitcoin Market And The New Regulations

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The FSB, aka the Financial Stability Board, announced a new framework recommendation for the crypto sector on July 11th. These new regulations for the crypto market will be applied to all the G20 countries, and they are expected to start in October. The FSB has also added that this will be of ‘same risk, same regulations, and same activities.’

There is more to the worries as the financial stability deputy governor for the Bank of England has recently shared a statement where he mentioned that crypto is somewhat over. Many investors haven’t figured out their losses from crypto deposits from companies like Voyager Digital and Celcius. The worst part is both these companies are fighting bankruptcy.

Data has revealed that many traders are thinking or even stopping from investing any more money in cryptocurrency in the future. Despite the correction of 11% in bitcoin, many traders have increased their leverage longs. However, the lack of premium in the CME is not worrying as bitcoin is also struggling with resistance.

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Federal reserves are currently unable to suppress inflation. The best ways may trigger an economic crisis. Therefore, traders are not rushing to take advantage of the dip in bitcoin prices.   

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