Market Update & Analysis: Bitcoin, Gold & Silver Sell Off

Market Update & Analysis: Bitcoin, Gold & Silver Sell Off

Precious metals and the majority of cryptocurrencies sold off today after experiencing significant gains throughout the past week.

Silver

Previous 24hrs:

$GLD -5.37%

$SLV -13.59%

$BTC -4.72%

$ETH -2.18%

S&P 500 -0.80%

$VGX -8.25%

The correlation between Bitcoin and Gold was evident today and continues to increase. Bitcoin has continued to decline after trading on $GLD was closed, it will be interesting to see if $GLD continues its correction on tomorrow’s open.

After a day of bearish price action, US Stock Futures are currently positive in after hours trading.

However, Bitcoin has yet to find support. As of now, critical support levels remain at $11.2k and $11k. While these levels have been sufficient support historically, there is very little support below them until roughly $10k.

It is concerning that very little support was formed on assets such as gold, silver, bitcoin, and most altcoins throughout the past few weeks. As a result, many assets such as silver have experienced over 10% declines. Being said, dips and sell offs such as these are required in order for a healthy uptrend to thrive and continue. In the midst of a daily decline, it is important to remember that one day does not typically define a trend, and as of the previous few months, the trend has been bullish for the aforementioned assets.

Institutional Interest

As reported by Coindesk,”Publicly traded business intelligence firm MicroStrategy purchased 21,454 bitcoin on Tuesday, effectively pouring all $250 million of its planned inflation-hedging funds into the digital currency.”

News of MicroStrategy entering into Bitcoin made significant headlines across Twitter today and marks yet another instance of continued institutional interest and investment into Bitcoin. In a statement shared with Coindesk, MicroStrategy claimed they saw Bitcoin as a ‘reasonable hedge against inflation.’