A turbulent mix of macroeconomics, coupled with expectations of a big Bitcoin move, could spell an interesting week for traders and cryptocurrency holders. Bitcoin (BTC) starts another week testing ever weaker support at $ 9,000, but what factors could increase or weaken price performance?
Cointelegraph Markets examines the main things traders should focus on Bitcoin for the next five days.
On 07/06/2020, the BTC / USD pair had just hit $ 9,200, a level never seen since July 2; At the end of Sunday, it fell below $ 9,000. As Cointelegraph reported, Bitcoin’s correlation with the macro may still produce more pain than profit for investors. The curious “recovery” of the shares comes amid massive intervention in the markets by central banks. Last week, charts showing the performance of the market denominated in Bitcoin and gold highlighted the instability of current conditions.
Following economic factors, China dominated the financial news on Monday: the country imposed controls on major transactions.
As Bloomberg said, the pilot program will eventually affect 70 million people, who will have to pre-declare transactions worth more than 500,000 yuan ($ 71,000), be it private or professional clients. The problem is bad debt, which has increased in China due to the coronavirus and is now causing big headaches for small national banks.
Chinese residents are officially prohibited from trading Bitcoin, but over-the-counter activities continue, making the true size of the underground market a matter of debate. Recently, a mining group located in China experienced its second largest outflow in history, suggesting that BTC could end with an OTC sale.