The Dow Plunge Won’t Trigger Bitcoin To Drop Below $10k – Three Reasons
Bitcoin has been dropping in price these days. The crypto market still looks pretty bloody today as well.
At the moment of writing this article, Bitcoin is trading in the green, and the king coin is priced at $10,645.09.
It’s been revealed that Bitcoin price dropped as the Dow Jones sharply fell as well, but three key reasons might prevent BTC from falling even lower.
The US stock market dropped.
Cointelegraph noted that the United States stock market fell as the Dow Jones Industrial Average (DJIA) dropped 358 points in pre-market trading.
The king coin’s price dropped to as low as $10,374 across major exchanges, but a larger pullback is unlikely.
The online publication addresses three key reasons that could save the near-term sentiment of Bitcoin.
Three reasons that could keep BTC from falling lower
The potential triggers that could keep the king coin’s price from falling lower are “the likelihood of a stimulus package, BTC’s strong technical reaction, and the resilient $10,5000 support level.”
It’s been also revealed that a stimulus package becomes more likely. During the past month, the Dow Jones struggled to recover amidst the new COVID-19 cases.
All kinds of macro and political factors that include US-China relations added pressure on the Dow.
“Since the Sept. 2 peak, the Dow has dropped 4.4%, according to Google Finance. Tech-heavy indices, like the S&P 500 and the Nasdaq Composite, posted larger losses of around 5.6%,” the online publication noted.
The markets were also rattled by the diagnosis that hit the US President, and BTC’s price dropped in tandem with the Dow after President Trump tweeted:
Tonight, @FLOTUS and I tested positive for COVID-19. We will begin our quarantine and recovery process immediately. We will get through this TOGETHER!
— Donald J. Trump (@realDonaldTrump) October 2, 2020
Anyway, we recommend that you check out the original article in order to learn more about these factors that could keep BTC’s price floating.
CoinMarketCap is a website that provides cryptocurrency market cap rankings, charts, and more. It was purchased by Binance for $400M in 2020.
Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.