Last Monday, Bitcoin started the new week at the level of $387 and stayed near it until Wednesday January 20 2016. On that day, Asian markets have once again resulted in another fall in world markets. Nikkei dropped by 3.7%, Hang Seng fell by 3.7%, Shanghai Composite fell by 0.9%. Also MSCI has fallen to its lowest level since 2011. The market in South Korea fell by 2.3%.
Moreover, we soon saw a continuation of the downturn in the US and European markets. NASDAQ index fell by 0.12%, and Dow Jones by 1.56%. Securities of the leading European countries fell by an average of 3-5%. But in just one day, 20 January 2016, Bitcoin price increased by $43 and the price reached $423.
On Thursday, January 21 2016, the BTC:USD pair was trading near the level of $420, Bitcoin couldn’t move higher.
On Friday, Bitcoin price dropped to the price at which it began the week – $387. The weekends Bitcoin price is at $396, and showing growth again.
Why has the Bitcoin price declined again? On Friday, 22 January 2016, we saw a rise in the US Dollar against major currencies. The Dollar strengthened against the statements of ECB President Mario Draghi to mitigate monetary policy. He also stressed that the central bank has sufficient measures for the implementation of monetary policy if the economic situation deteriorates. Investors welcomed these positive statements, and we saw a rise in prices for risky assets such as raw materials, particularly oil. Considering such news the Dollar strengthened on Friday and pressured Bitcoin.
After the speech of Mike Hearn, Bitcoin price moved lower than $350 but then again, the price rose back to $423. This shows great confidence of investors in Bitcoin. Now, when do you think the uptrend resumes?
This analysis and forecast are the personal opinions of the author and are not a recommendation to buy or sell Bitcoins.