On Monday, September 20, bitcoin loses 5.20% to $44760 (the minimum was $44444) Ether fell more — by 6.17%, to $3122 (minimum $3100). The fall is caused by the flight from risky assets. SP&500 futures slumped 1% to $4,376. Cryptocurrency is a low–liquid asset, so any negative straits turn out to be decent in a short period of time.
Since the opening of the new week, risk aversion has resumed on the stock exchanges. There are several factors that put pressure on major currencies, commodity assets and help the dollar.
He is now more of a defensive asset.
– The Chinese real estate development giant Evergrande may default on bonds in the coming days. The debt is more than $300 billion. In Hong Kong, stocks fell 10%. The government is in no hurry to intervene.
– Uncertainty remains regarding stimulus measures (QE) and changes in the US debt limit. US Treasury Secretary Janet Yellen demands that Congress immediately take further measures to raise the debt limit. If they don’t have time, the shutdown will begin.
– U.S. Senator Joe Manchin postponed the vote on President Joe Biden’s spending package until 2022.
– A political crisis has broken out in relations between France and the United States. The crisis will affect the definition of the new strategic concept of NATO.
– Relations between the United States and China have deteriorated due to the concluded agreement between the United Kingdom, Australia and the United States. There is no progress in trade negotiations.
There are too many negative factors for risky assets. The clouds over the crypto market quickly thickened. The technical picture on the older time frames becomes “bearish”. In this regard, the bounces of the crypt will be sluggishly bought off until the appetite for risk increases. For bitcoin, the trend line from the low of 42843 passes through the level of $43900. If you look at the weekly TF, then the flat continues there after falling by 19%.