Bitcoin (BTC) price is struggling to exceed $ 51k on March 8, with the yields of US government bonds and the US Dollar Index (DXY) rising.
Global stock markets, including the US and Asia, declined after the US Senate accepted the $ 1.9 trillion stimulus package.
Bitcoin Price Index: How much is 1 Bitcoin in TL? (BTC TL)
Why is Bitcoin falling?
World Piyasa Analisti Holger Zschaepitzexplained that the bond market was mixed after 10-year US bond yields soared 1.6 percent.
This turmoil in the bond market naturally led to the sale of risky assets and affected both exchanges and cryptocurrencies.
With the negative macro environment, stock markets and Bitcoin have entered an increasingly tight consolidation in recent weeks.
Famous investor Peter Brandt, that he saw many corrections throughout his career and in some cases these correlations could end dramatically.
Therefore, Bitcoin could act in conjunction with the stock markets in the foreseeable future and react negatively to the rise in bond yields. If the correlation weakens over longer time frames, the Bitcoin bull market may regain momentum.
Still, March may be a slow month with Bitcoin trading with low volatility.
Could there be a bigger drop?
Investors expect a wider drop for bitcoin in the short term if traditional markets depreciate.
For example, an anonymous cryptocurrency investor Loma, a decline to $ 48k, a key support level in the short term, should traditional markets continue to weaken. suggested that it is possible.
The key to Bitcoin this week is whether DXY will retreat after a week-long rally and allow risky assets to rise.
On the other hand, yields on US government bonds are approaching the key resistance level. If rejected from this level, Bitcoin can gain momentum and break the $ 52-53K resistance.