U.S. stocks surge, bitcoin bearish: Cryptocurrency market bottleneck or difficult to break

On Wednesday, the three major US stock indexes closed sharply higher. The Dow rose over 1170 points, or 4.5%, the Nasdaq rose 3.85%, and the S & P 500 index rose 4.22%. United Health rose over 10%, leading the Dow. Apple rose over 4%. Chip stocks rose sharply, Micron Technology rose 6.8%, Nvidia and AMD rose 7%.

Global markets have experienced incredible turbulence in the past two weeks. The U.S. stock market has suffered heavy losses, while Bitcoin (BTC) and the entire cryptocurrency market continue to face tremendous downward pressure.

Although Bitcoin has been closely linked to traditional markets for the past few days, it is important to note that this connection seems to have broken today. Even though major U.S. stock market indexes have rebounded today, Bitcoin remains below $ 9,000.

Based on recent benchmark cryptocurrency price movements, a cryptocurrency commentator and gold investor noted that "Bitcoin is bearish mainly because it cannot withstand the pressure of the Federal Reserve to cut its interest rate by 50 basis points yesterday."

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U.S. stocks rebounded yesterday, bitcoin stalled

 

The US stock market has been through a roller coaster for a week and the benchmark index has caused incredible price volatility. The US stock market kicked off with a strong rebound this week, causing the Dow Jones Index to rise by more than 5 percentage points, the S & P 500 Index and the Nasdaq both rising more than 4 percentage points. This is the worst week the market has experienced since the financial crisis of 2008.

However, just yesterday, the vast majority of this rebounded earnings fell through due to another sharp sell-off, the most recent drop being within hours of the Federal Reserve's emergency rate cut of 50 basis points.

Today, the market is climbing again, with the Dow Jones Index up 2% and the S & P 500 Index up 1.6%.

Bitcoin is not currently keeping up with the momentum of the stock market. Bitcoin's current current price is $ 8,750, a decrease of less than 1%.

Gold investors: bitcoin has fallen sharply due to recent interest rate cuts

 

Peter Schiff, a well-known gold investor, once again attacked Bitcoin in a recent tweet, saying on Twitter: "Even if interest rates have been cut by 50 basis points and there has been violent turmoil in the traditional market, Bitcoin cannot stop It has to make people wonder when Bitcoin will stop falling. "He finally claimed that if Bitcoin is hopelessly picking up, then it is meaningless to store Bitcoin. The most effective way to stop losses is to sell Bitcoin as soon as possible. Off.

Interestingly, after the rate cut yesterday, Bitcoin did rise. However, after the bitcoin reached $ 8,900, it fell back, and this momentum disappeared.

As for whether the current stock market rally will also help to drive bitcoin's rise, it is unclear. It is also unclear whether Bitcoin can surpass the bottleneck of the current price level.

Compilation: Lin Shihao

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