Nord Stream and Bitcoin collapse
Nord Stream, one of the pipelines transporting Russian gas to northern Europe, was vandalized on Monday.
On the same day, the price of bitcoin dropped from $20,300 to $18800 within a few hours.
Are the phenomena related? That means, was it news of Nord Stream sabotage that caused bitcoin to drop on Monday?
Early unconfirmed rumors that Nord Stream might have been vandalized began spreading many hours before the collapse.
- In fact, when these rumors started spreading
- Bitcoin's cost increased from $20,000 to $20,300.
- U.S. markets were closed, and they were about to open higher
- so bitcoin price only predicted that rise.
Usually, all that is required to move financial markets is rumors.
It is not news that confirms or denies moving markets, but often the rumors themselves are the engine.
This news was talked about before US markets opened, opening at a sharp level of rally on Monday.
Nor could anyone report that sabotage would play a role in bitcoin price collapse
These news spread fear and panic, albeit with significant growth through positive bitcoin price activity and the U.S. stock market.
Negative situation dominating Bitcoin and the US stock market
An hour and a half after US markets opened, the crash began, starting with Nasdaq and followed by bitcoin
- At the time, images began to be posted on social media
- expressing the vandalism of Nord Stream
- hours after the vandalism was confirmed
- it is difficult to understand the images that generated cases of fear.
Bitcoin price remains low at $18,500 over recent hours, it is difficult to see the market interaction with such markets
The main driver is due to other reasons, reasons related to the fall of US stocks and then bitcoin.
Relationship between Dollar and Bitcoin
When there were two consecutive declines at the same time, there was a rise in the dollar index, which indicates a measurement of the value of the United States dollar against a basket of foreign currencies.
Sabotage played an important role, but this role is not key with the complex situation.
This is all due to concern over financial markets that are returning to a possible escalation between Russia, Ukraine and Europe.
Markets did not react significantly at first, because they give great value to the potential rally in the opening of U.S. stock markets, and after this brief pause, led to the accumulation of fear
Great Britain
Another element that generates fear in the economy and financial markets is the evolving political, economic and financial situation in Great Britain.
The British pound has lived a path similar to bitcoin's many turns, with exceptions
Since September 23 the price of sterling has fallen dramatically
coinciding with the existence of a new government, a statement talking about an increase in public debt, investors are afraid that debt financing will be through the new pounds, and fear has increased with central bank statements
As fear increased because of Russia, although bitcoin and sterling recovered today, the pound fell yesterday and bitcoin rose slightly.
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