While US President Donald Trump’s new type of coronavirus (Covid-19) test is positive, Bitcoin (BTC) and other cryptocurrencies are falling.
Cryptocurrencies have suffered severe declines after an unfavorable day for traditional financial markets. Currently, Bitcoin and many altcoins are in the red zone. For example, according to CoinMarketCap data, BTC has dropped by 5% and Ethereum (ETH) by 8% in the last 24 hours.
The coming hours could be negative for both cryptocurrencies and stocks, according to analysts.
Bitcoin Falls Below 10,500 Level
Bitcoin, the world’s largest cryptocurrency, has dropped by about 5% in the last 24 hours. All financial markets have been declining in recent weeks and cryptocurrencies have been affected by this. As most of this year, cryptocurrencies are trading similarly to stocks.
Now, the Bitcoin price is traded below $ 10,500 with a market value of $ 193.7 billion. In addition, Ethereum (ETH) recorded a loss of 8%. ETH currently has a price of $ 338 per token and a market value of $ 38.19 billion.
XRP, Bitcoin Cash (BCH), Binance Coin (BNB), Polkadot (DOT), Chainlink (LINK), Bitcoin SV (BSV) and Crypto.com Coin (CRO) are also among the altcoins that have experienced serious declines. DOT, LINK and CRO record weekly losses.
Creating Sales Pressure
In a recent tweet posted by Donald Trump’s official account, he and his wife Melania announced that Trump’s Covid-19 tests were positive. He reported that they are now starting the quarantine and recovery process. This has been bad news for traditional financial markets and has also created a selling pressure in the cryptocurrency market.
Following the announcement on Twitter, Bitcoin dropped over 2% in just a few minutes; this figure is close to $ 300. Analysts think that the stock markets could be negatively affected and could increase the selling pressure on digital assets. While traditional financial markets are expected to reduce volatility in the days before the presidential elections in the United States, we can see transactions increase in the coming hours and next week.
Many traders are currently following the news rather than techniques to profit from unexpected market fluctuations. The real question is whether cryptocurrencies will be closely related to traditional financial markets or whether they can be bought independently of stocks.