The fuse behind the Bitcoin plunge
Some South Korean media reported that the International Monetary Fund (IMF) warning caused the digital currency market to plummet, but the IMF warned that the news was released on October 9th at 23:36, and the currency market fell from 8 am yesterday. Starting the waterfall, this news does not make sense from timeliness. Those who are concerned about the stock market should know that US stocks plummeted last night, the global capital market echoed, the Asia-Pacific stock market was losing weight, risk aversion sentiment rose again, and high-risk assets suffered a sell-off. The fuse of the US stock market crash is the Fed’s upcoming interest rate hike. Recently, the US dollar has risen and the US 10-year bond yield has soared. The 10-year US Treasury yield is generally considered to be ‘risk-free yield’ and the US debt is higher, indicating that current market
risk appetite is decreasing. As the global currency shrinks and liquidity tightens, there is less money in the market. The rising stock market and the price of the currency market need funds to promote. Once the capital is less, it is like water. This high-risk product often suffers. By the time of the sell-off, some of the funds will flow to the marginal high-quality products (receipt, trust, bonds). The stock market plunged and the global capital market plummeted, which became the catalyst for today's pancake diving. Bitcoin currency, an asset that has been placed on a safe haven, has been a tool for speculation since it was given financial attributes. It stems from trust and is safe, but it is a pity that there is no black swan incident or sudden incident. It has become a high-risk asset for selling. High liquidity, high volatility, and high speculativeity make this digital gold destined to be a high-risk asset. The Bitcoin price has risen and fallen, and the market is hot and cold, driven by consensus, in the name of money. Through long-term observation in the bear market, the currency market is actually relatively strong with the global environment, the global capital market, and the US stock market. There are a few points that need special attention. The progress of
the Fed’s interest rate hike, whether the US stocks will continue to fall sharply in the US mid-term elections, and whether the US stock market decline will continue to be transmitted to other capital markets, thus affecting global risk aversion. . Going back to the market level, BTC has already broken its position in the short term and began to fall in volume. Next, it will face the test of the $6,000 outsole. Don’t know what will happen to the Bitcoin market. Bitcoin Info Bitcoin price today is $6281.49, a decrease of 0.59%.