Bitcoin kicked off the week with a decline, shedding around 3% on Monday after dropping 6.5% last week. The first cryptocurrency hit three-week lows amid selloffs in the stock and oil markets.
Bitcoin fell below the round $ 30,000 level on Tuesday for the first time since June 22.
Stock indices, oil prices and US government bond yields declined on Monday amid fears that the spread of the delta coronavirus and rising inflation will hold back the global economy.
The rise in COVID-19 cases in many parts of the world, including countries with high vaccination rates such as the UK, has forced investors to lower their expectations for economic growth in the coming months.
“The correction of the S&P 500 could make a negative contribution to the short-term dynamics of the crypto market. In this case, the correlation of the benchmark index of stocks and bitcoin may well show its full potential, since similar cautious sentiments prevail in both markets,” the FxPro team of analysts notes.
Billionaire Hamish Douglas, co-founder of investment firm Magellan Financial Group, called digital assets one of the “greatest mass delusions in modern history.” He compared the cryptocurrency market to a bubble that “will eventually explode.” According to Douglas, inexperienced investors are in favor of such assets, writes forklog.
Negative social sentiment for Bitcoin is gaining momentum as cryptocurrency volatility falls. The cryptocurrency community is overwhelmingly skeptical about a market recovery. This is the conclusion reached by Santiment analysts after studying the on-chain and off-chain activity of bitcoin. It is reported that most investors are completely disillusioned with the cryptocurrency.
“Approaching the round level of $ 30,000 and its subsequent breakdown may trigger an avalanche of sell orders, while buyers this time may not be in a hurry to help the benchmark cryptocurrency. Many crypto market participants are morally ready to see new lows for bitcoin before new long-term purchases, ”the FxPro team of analysts notes.
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