Bitcoin's correlation with traditional markets appears to continue.
Back and forth discussions with regard to a second stimulus package for the people of the United States have been ongoing for months. Today, President Trump decided to push the matter back until after the 2020 presidential elections have concluded. This appears to have resulted in a price drop for Bitcoin (BTC) and other mainstream markets.
"Nancy Pelosi is asking for $2.4 Trillion Dollars to bailout poorly run, high crime, Democrat States, money that is in no way related to COVID-19," Trump said in an Oct. 6 tweet thread.
"We made a very generous offer of $1.6 Trillion Dollars and, as usual, she is not negotiating in good faith. I am rejecting their request, and looking to the future of our Country."
No further stimulus package talk will occur prior to the election, the president said in subsequent tweets, while boldly forecasting victory. "Immediately after I win, we will pass a major Stimulus Bill that focuses on hardworking Americans and Small Business," he posted.
Following these tweets, the market responded in disapproval. Stocks fell noticeably, while Bitcoin dropped approximately $200 before bouncing slightly, holding a press time price of $10,577.
Bitcoin's drop seems to suggest that the asset's price continues to react in tandem with mainstream markets, at least with regard to major fiscal news. For some, this holds as antithetical to the asset's supposed role as a non-correlated store of value.
written by Benjamin Pirus
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