Bitcoin Price Falls As Concerns Mount Over a Potential Second Wave of COVID-19
Rising concern over a potential second wave of COVID-19 have spooked the world's stock markets,
which means that the short-term correlation with U.S. stocks that we have witnessed on occasion over the past few months has returned. The reason for this concern is fresh COVID-19 outbreaks in the U.S., China, and elsewhere (e.g. the Middle East). Earlier today, Dr. William Schaffner of the Vanderbilt University School of Medicine told CNBC show "Street Signs Asia") during an interview that people were not being careful, which is especially dangerous especially during mass gatherings, and that this was helping the coronavirus to spread:
"I think the second wave has begun. "We’re opening up across the country, but many, many people are not social distancing, many are not wearing their masks." As for BBC News, it reported today that "Beijing has recorded 36 new locally-transmitted coronavirus cases, amid fears of a second wave in the Chinese capital." Apparently, this most recent outbreak "has been linked to the city's largest wholesale market." As of 08:42 UTC on June 15, futures for the Dow, S&P 500, and the Nasdaq were down 2.55%, 2.12%, and 1.73% respectively.
Crypto analyst Mason Jang, who is the Chief Strategy Officer (CSL) at South Korean blockchain analytics startup CryptoQuant says that Bitcoin whales have responded to these worrying developments by rapidly moving their coins to centralized crypto exchanges such as Coinbase and Gemini, as evidenced by the netflows into the hot wallets owned by these exchanges: One crypto analyst/investor that has noticed the return of Bitcoin's correlation with U.S. stocks — something we have witnessed over the past few months during periods of financial market stress — is Matthew Kaye, Managing Partner at crypto-focused investment firm Blockhead Capital,who tweeted on June 12:
We did not see the melt up that I wanted to see over the weekend. Hedged going into this period of uncertainty. Keep an eye on DeFi.
We've lost the Schiff and Modified Schiff pitchforks. The Gaussian Channel trade is on. mid $8k's or lower are possible. And a few hours ago, Kaye commented:
We did not see the melt up that I wanted to see over the weekend. Hedged going into this period of uncertainty. Keep an eye on DeFi.
We've lost the Schiff and Modified Schiff pitchforks. The Gaussian Channel trade is on. mid $8k's or lower are possible. Thread over.
According to data from CryptoCompare, between last Thursday (June 11) — the day that U.S. stocks suffered their biggest loss since "Black Thursday" (March 12) — the Bitcoin price has dropped from $9,937, the intraday high on June 11, to where it is now, i.e. $9,121, which means a loss of 8.2%:
Article Produced By
Siamak Masnavi
Siamak received his PhD in Computer Science from University of London in 1992. He has worked as a research scientist, technical author, software developer, and journalist. Since 2014, he has been researching cryptocurrencies and other applications of blockchain technology.
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