Many shareholders are now Profit-taking as the value of bitcoin continues to drop for three consecutive days. On Tuesday, the price of Bitcoin dropped by 4.33%, ultimately leading to a daily minimum of $53,221. This decline came because of a correction going on, which started on Saturday after Bitcoin’s record high of $61,778.
When the traditional market was heading upwards, Bitcoin price, in contrast, was going downhill. The S&P500 added 0.6% setting a new record high of $3,968.94. Furthermore, the computer-savvy Nasdaq also shot up 1% to $13,459.71.
Bitcoin has made a good connection with Wallstreet indexes as it was part of the few assets that had grown substantially in contrast with a poor debt producing environment, but when the output recovered rapidly, investors fell back to the safety nets of the United States Dollar, resulting in BTC and others to fall in value.
The US treasury note fell by 0.02%, but because of the price still remaining quite competitive with the 13 monthly high of 1.64%, the dollar bounced back, closing with 0.16% upwards, which is also why the limelight has moved away from the Bitcoin marketplace.
Meeting of FOMC
A lot of displeasure by the BTC traders is expected, coming after a U-turn in treasury exchange as they believed the Federal reserve had made dovish policies.
Every month the US National Bank has bought $120 billion worth of home loan support securities and government-bonds. While, the bank keeps up benchmark loan prices close to nothing, making it easy to loan dollars. An Increasing number of bond purchasing has caused the charm of possessing debt, less-appealing by reducing the profits, although less-expensive dollar debts made greenbacks drop.
The current policies have been kind to Bitcoin as it has boomed over 1500% in March. Because of this, the two days FOMC meeting ending on Wednesday would be so important for short-term bias.
What to expect
Jim Reid, a researcher at the Deutsche Bank, says the meeting would play a big part in terms of the risk factor along with the profits for the upcoming days. He added that Jerome Powell in the meeting would highlight any remaining uncertainties and how the job market is yet to make a substantial recovery from the current state.
CEO of Galaxy Investment Partners and critics believe that the stimulus of $1.9 trillion could also become a part of the Crypto market. Similarly, a dovish policy would also help BTC because new investors will come aboard the trend of investing in Bitcoin.