In fact, already yesterday BTC had already shown signs of weakness, as after the news about the CFTC complaint against BitMEX the price had suddenly dropped from about $10,800 to $10,400 in just over an hour.
However, over the next few hours it had returned around $10,700, but as soon as the news of the positivity at the Covid-19 of the US President spread, a new sudden drop occurred.
The price went from $10,640 to $10,380 in less than an hour. In other words, in the last 24 hours there have been two sudden drops as a reaction to two important news.
The first drop was 3.5%, the second 2.5%. In less than 24 hours the price of bitcoin fell by almost 4%.
In both cases, however, in the following hours the price rose again, partly recovering the ground lost in the minutes after the news was published.
To tell the truth, although these news are certainly important, they would not seem to have so much to do with the bitcoin value.
The two falls seem more like emotional reactions to something unexpected than rational investor reactions.
In any case, it is strange to note how, in the face of political and economic uncertainty, Bitcoin falls, when everyone would expect the opposite. It is also true, however, that during the first lockdown that inactivity had caused BTV’s value to collapse.
It must also be said that in the last few days BTC trading volumes in crypto markets are definitely low and this can favor sudden fluctuations, especially if they are generated by sudden fear.
It may also be that the bitcoin price between yesterday and today is going through a moment of weakness, and two news like this are enough to make it fall.
On the other hand, the judicial troubles of the BitMEX exchange are nothing new, and the positivity to Donald Trump’s coronavirus has very little to do with the bitcoin value.
What happened seems more an emotional reaction occurred in a context of weakness, rather than something that is really able to question the value of BTC.
Bitcoin vs Gold
In the meantime, however, gold prices are rising, underlining how the two assets have flowed.
Gold, in fact, is rising, marking +1.1% in the last two hours.