The Bitcoin price has dropped, and the gold price has also dropped. Why? Is it just simple market overheating or something more?
Bitcoin price is falling
Today, Bitcoin is trading at $67,500, which translates into a 5% drop from yesterday. The lowest price of the cryptocurrency fell to $65,000. On a weekly basis, the situation does not look bad, as it means a decline, but only by a symbolic 1%.
Ether is trading at $3,251, down 8% over 24 h and 2.5% over the week.
Gold has ended its victorious rally – at least temporarily. The price of the metal of kings fell to USD 2,360 per ounce. Silver fell to approximately USD 28, when it seemed that it would soon break the psychological barrier of USD 30.
Where do these declines come from?
What are the reasons for the decline? Of course, these can only be corrections. So nothing terrible – just preparation for the next climb.
This time, however, it is also worth looking at the geopolitical situation. This time it may be the “sponsor” of the correction Wall Street Journal. Yes, this is one of the most famous editorial offices in the USA. Its journalists reported on Friday that Iran would attack Israel within 48 hours. This was supposedly in retaliation for last week's attack on the Iranian diplomatic mission in Syria, which resulted in the loss of life, among others. two generals.
Tehran's diplomacy threatened to answer for the attack, but not in a way that would lead to the outbreak of war. And so far, nothing – apart from media reports – indicates that it will be otherwise.
But why did this issue concern investors so much? The reason is that Israel is an important US ally. The Americans would therefore have another front on the globe to serve (at least in terms of equipment supplies). Putting this into the geopolitical puzzle, one can see that it would be another blow to Washington's hegemony.
In response to the first press reports in the USA, gold and silver prices began to rise. But after a few hours the correction came. The market probably decided that there would be no war. And hence the correction. We will probably find out the final answer tomorrow.
