Why Bitcoin Suddenly Dropped 6% on Thursday
The week-long calm in the bitcoin market ended with a sudden $800 price drop on Thursday. Here's three likely reasons why.
Bitcoin's rally has stalled since the May halving, but that hasn't deterred large investors from accumulating coins, data shows.
A fresh stimulus "bazooka" from the Fed Reserve and the U.S. government lifted prices for both stocks and bitcoin.
Bitcoin's Mayer multiple indicates the cryptocurrency is undervalued despite having rallied by over 40% this quarter.
The put-call volume ratio of bitcoin options suggests Monday's price decline could be short-lived. However, the cryptocurrency remains vulnerable to a further sell-off in stocks.
Fear has crept back into cryptocurrency and traditional financial markets, with bitcoin falling alongside U.S. stocks on Thursday.
After another failure above the $10,000 mark, some bitcoin traders are now looking ahead to this week's European Central Bank meeting, where authorities could commit to an extra €500 billion in money injections – er, asset purchases.