Bitcoin price drops down below $11,000 for the first time this month. It started to plummet down around 10 am ET, and bitcoin price dropped below $11,00 to reach its first-ever lowest level since August 4. As of 10:30 am ET, bitcoin’s price fell on Bitstamp. The leasing cryptocurrency last traded with a decline of 3.4%
Accompanying the delay was a rally on Wall Street. The sudden surge downward was due to the S&P 500 rode 1.84%, and Nasdaq bounced back with a 2.32%.
This, however, should not surprise the stockholders since bitcoin is correlated inversely to the S&P 500. When one rises, the other will fall- and vice versa. Bitcoins rise the month before was caused by the sudden decline of the S&P 500. Now as the market shifted towards S&P, bitcoin felt the effect by declining down and getting it’s market value reduced.
Looking at its graphs, the stock market of the S&P 500 increased every time Donald Trump tweeting how it had risen 20 percent since his election. It seems that the trigger was the Trump administration.
“Certain products are being removed from the tariff list based on health, safety, national security, and other factors and will not face additional tariffs of 10 percent,” the US Trade Representative’s office wrote in a statement. The statement caused a massive problem for the stock market.
The delay of the tariffs would affect the company’s performance thus taking a straight thrust towards a vicious sell-off and the bitcoin price to plummet downwards accompanying the rally in the days that followed the statement released by the US Trade Representative’s office.
Prices would soon, depending on the result of the tariffs, increase back to normal or would rather take another plunge below its lowest price amount.