The leading cryptocurrency witnessed a drop of nearly 8% today as the price plunged to nearly $6,100. The drop in the price of bitcoin indicates that the cryptocurrency has not successfully decoupled from the traditional financial markets. If the pattern is followed, bitcoin is poised to crash below $5,000 over the weekend.
USA markets are expected to open down.
The primary factor that might trigger a downside movement of bitcoin is the US financial markets that are expected to open down. Currently, Dow Jones and S&P 500 both are down. Investors are likely to liquidate their assets after this week’s gains and take profit. Bitcoin is likely to drop below the $5,000 mark in the coming days.
USA reports the most number of COVID 19 positive cases in the world.
The USA has so far has reported over 104,000 COVID 19 positive cases so far that is the most number of cases in the world. So far, over 1,700 people have lost their lives in the USA because of the coronavirus. The numbers are increasing every hour in the country. Because of this global pandemic, the USA has reported an increase of 1,000% in the unemployment rate since last year. The short-term future for bitcoin and other major cryptocurrencies is looking grim at least until the war with coronavirus is going on.