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Where will be the next trend of the cryptocurrency market? 

Where will be the next trend of the cryptocurrency market? 

  • 5 November 2020
  • 291 View

According to Cryptocurrency market news and analysis of the Minerland, the most important factors that can affect the price of Bitcoin are as following:

  • increasing the pandemic of COVID-19,
  • the state of the network,
  • the state of futures markets,
  • Most importantly, the US election.

US election days are a time that has historically had a profound effect on the bitcoin price trend. So the upcoming election has this effect. The market is waiting for the outcome of this election. None of the candidates raised the issue of the Chinese block and digital currencies in the election campaign. But the policies of the new president will affect the price of cryptocurrencies, especially Bitcoin.

According to financial reports, the effects of the coronavirus have had devastating effects on both the social system and the economic system.

One of the consequences of the COVID-19 outbreak on the economy is the purchase of Bitcoin by large companies. For example, two of these companies are Square and MicroStrategy. These companies have turned to buy Bitcoins to have a shield against the devaluation of fiat currencies.

According to many experts, no matter the result of the US election, bitcoin like gold will continue to grow. Bitcoin has recently reduced its correlation with large financial markets, but may still be affected by the strength of the USD Dollar.

On November 3rd, the US dollar index continued to rise above 94 levels.

It is worth noting that the correlation between this index and the price of Bitcoin has been reversed. It means that with the strengthening of this index, the price of bitcoin will decrease.

What is the state of the European stock market?

Quarantine has been imposed in Europe due to the coronavirus. Under these circumstances, the stock market situation suffers. The current economic situation in Europe has left no trace of upward signs in the market. Referring to the state of these markets, Zschaepitz, market analyst, said that the German stock market lost $ 4.1 trillion last week alone. This rate has been unprecedented since the fall of March.

Bitcoin fans believe this is the best opportunity to purchase; The European Central Bank (ECB) has also announced that it will offer more support packages and increase money printing.

A Twitter analyst named “MMCrypto” tweeted, referring to the new quarantine plans, that we should reduce investment in Fiat money.

The US and European stock markets expected to recover as bitcoins return.

Is there any gap in futures contracts?

Taking a closer look at the Bitcoin chart and the factors that can affect the price fluctuations of this cryptocurrency, we find that the price fluctuations we saw over the October weekend of 2020 have created a new gap in future markets.

Bitcoin generally behaves in such a way that it tends to fill these gaps. Usually, if this gap recorded in higher ranges, the price will tend to increase, and if the gap recorded in lower ranges, the price will fall to fill it.

2 responses to “Where will be the next trend of the cryptocurrency market? ”

  1. Herve Fodouop says:

    Good to know

  2. Yanga Jili says:

    Great article indeed

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