The reasons for the new fall in the bitcoin rate

The actions of the owners of large wallets.

The reasons for the new fall in the bitcoin rate

After falling to $ 44,892, the price recovered almost 16% to $ 51,530. The upward correction was 50% of the fall from $ 58352 to $ 44892. It took 2 days (51 hours) to recover. The price climbed to $ 51,530 on the news that the US Securities and Exchange Commission (SEC) approved the application of the Coinbase cryptocurrency exchange for a direct listing of shares. Buyers got into turbulence on Thursday (February 25) in the American session. Sellers dropped the rate to 46 thousand, at auctions in Asia - to 44106.

The rise in the yield on 10-year US government bonds (US Treasuries) caused a rally in the dollar and a massive sell-off in shares. And they have already provoked a weakening of major currencies and bitcoin with alts.

US Treasuries

The yield on 10-year US government bonds climbed to 1.56%, exceeding the S & P500 index's dividend yield of 1.52%, following weak demand at the $ 62 billion 7-year bill auction. Tech stocks hit hard as yields rose. The S & P500 fell 2.45%, while the Nasdaq Composite declined 3.52%. The Nasdaq index turned out to be sensitive to the rise in bond yields.

S&P 500 Dividend Yield - (12 months dividend per share) / price.

Today, the yield has declined to 1.47% per annum (current value is 1.487%). The dollar continued to advance on all fronts. S & P500 futures are down 0.6%. If the cue ball had not fallen on February 23, then it was able to survive the growth in profitability well, because for it it has a high correlation with it (0.93). The connection began to strengthen since November 2020. I think this is due to the fact that he became a defensive asset against inflation and increased demand from large companies for him. See the graph below.

Bitcoin and US10Y yield

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