The Fed, the dollar and tech threaten bitcoin's $80,000
The largest of the cryptocurrencies falls again below $80,000, after adopting a cautious stance, pending to see how the market variables that have the greatest correlation with bitcoin develop, according to Citi analysts.
Bitcoin's price has dropped below $80,000 due to increased correlation with financial markets, particularly the tech sector, amid investor uncertainty. According to Citi analysts, the correlation between bitcoin, ethereum, and the S&P 500 has risen to around 70% over the past month. The Federal Reserve's hawkish stance and a strong US dollar have also contributed to the decline, with investors seeking liquidity and selling assets like bitcoin and gold.
The market expects an 80% chance of another interest rate hike in December, which could further negatively impact risk assets like bitcoin.
Written by urgent.news from Expansion ES's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
