{"id":101094,"date":"2020-10-30T12:00:00","date_gmt":"2020-10-30T09:00:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/bitcoin-suddenly-slides-4-as-bofa-predicts-a-20-stock-market-crash\/"},"modified":"2020-10-30T12:00:00","modified_gmt":"2020-10-30T09:00:00","slug":"bitcoin-suddenly-slides-4-as-bofa-predicts-a-20-stock-market-crash","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/bitcoin-suddenly-slides-4-as-bofa-predicts-a-20-stock-market-crash\/","title":{"rendered":"# Bitcoin suddenly slides 4% as BofA predicts a 20% stock market crash"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3f6c1f870b0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3f6c1f870b0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-suddenly-slides-4-as-bofa-predicts-a-20-stock-market-crash\/#Would_a_%E2%80%9Crisk-off%E2%80%9D_drive_hurt_Bitcoin_in_the_short_term\" >Would a \u201crisk-off\u201d drive hurt Bitcoin in the short term?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/bitcoin-suddenly-slides-4-as-bofa-predicts-a-20-stock-market-crash\/#This_means_max_pain_for_altcoins\" >This means max pain for altcoins<\/a><\/li><\/ul><\/nav><\/div>\n<p>&#8220;<strong># Bitcoin suddenly slides 4% as BofA predicts a 20% stock market crash <\/strong>&#8221;<\/p>\n<div data-v-5a136f3a=\"\">The price of Bitcoin (BTC) abruptly dropped 4% from the day\u2019s peak on Oct. 30 as the uncertainty in the stock market intensified. With five days left to the U.S. presidential election, Bank of America (BofA) suggested a 20% drop is possible.<\/p>\n<p>The Dow Jones Industrial Average (DJIA) declined 7.55% since Oct. 12. Tech-heavy stock indices performed slightly better in the same three weeks as the Nasdaq dropped 5.8%.<\/p>\n<p>While the correlation between Bitcoin and stocks has declined in recent weeks, the slump of risk-on assets could negatively affect cryptocurrencies.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2020-10\/a79ed376-80ed-4f17-953b-6003553131dd.png\" alt=\"\" title=\"\"\/><figcaption style=\"text-align: center;\"><em>The daily chart of Bitcoin with moving averages. Source: TradingView.com<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Would_a_%E2%80%9Crisk-off%E2%80%9D_drive_hurt_Bitcoin_in_the_short_term\"><\/span>Would a \u201crisk-off\u201d drive hurt Bitcoin in the short term?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to BofA economists led by Michelle Meyer, the election result is not the biggest threat to equities.<\/p>\n<p>Rather, it is whether a contested election occurs that could cause the markets to rattle due to the uncertainty. The markets could still rally regardless of who wins the election. But a contested election may lead to a market slump. The economists <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-10-29\/u-s-stocks-face-20-slide-with-contested-election-bofa-says\">wrote<\/a>:<\/p>\n<blockquote><p>\u201cLandslide victory for either Trump or Biden and rapid election conclusion would likely be welcomed by markets while a severely contested election could see risk-off and drive 10-year rates materially lower.\u201d<\/p><\/blockquote>\n<p>For Bitcoin, it is still difficult to gauge whether a potential prolonged equities dump would cause a pullback. <\/p>\n<p>Since Oct. 12, while U.S. stock market indices declined by 5% to 6%, Bitcoin rallied by nearly 16%. In the last 18 days, BTC rose from $11,167 to $13,290, massively outperforming gold, stocks and the U.S. dollar.<\/p>\n<p>But, the confluence of Bitcoin facing a multiyear resistance level at $14,000 and the lack of certainty around risk-on assets could slow BTC\u2019s momentum.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"\/><\/p>\n<p>In the near term, as Cointelegraph reported, $13,000 serves as a large whale cluster. This means high-net-worth buyers would likely protect $13,000 as a key support area. Since $14,000 was the previous top for Bitcoin in mid-2019, the new range would likely be found $13,000 to $13,900.<\/p>\n<p>If the market uncertainty persists after the election, there is a higher probability that it would place BTC in the low $13,000 region for a prolonged period, which wouldn&#8217;t necessarily be unhealthy.\u00a0<\/p>\n<p>&#8220;A correction wouldn\u2019t necessarily be unhealthy for the Bitcoin market at this point, as that may lead to further accumulation,&#8221; explained Cointelegraph Markets analyst Michael van de Poppe in his latest Bitcoin price technical analysis.\u00a0He added:\u00a0<\/p>\n<blockquote><p>&#8220;The majority of the investors definitely want to see a straight line toward $200,000, but that\u2019s simply not h<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ening.&#8221;<\/p><\/blockquote>\n<h2><span class=\"ez-toc-section\" id=\"This_means_max_pain_for_altcoins\"><\/span>This means max pain for altcoins<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Throughout October, alternative cryptocurrencies have found themselves in an awkward position alongside rising BTC dominance. When Bitcoin increases so fast in a short period, it could hinder the altcoin market\u2019s recovery because it creates a volume vacuum.<\/p>\n<p>According to researchers at Santiment, the sentiment around Bitcoin has strengthened in recent weeks and months. Consequently, the Bitcoin dominance index has consistently increased, dwarfing both major and small-cap cryptocurrencies. They <a rel=\"nofollow noopener noreferrer\" target=\"_blank\" href=\"https:\/\/twitter.com\/santimentfeed\/status\/1321937341024362498\">said<\/a>:<\/p>\n<blockquote><p>\u201cAs would be expected with $BTC&#8217;s increased #crypto market dominance, sentiment has grown more positive and dwarfed other large cap assets. Weighted <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">social<\/a> sentiment measures the positive\/negative ratio of comments about assets, while also including volume.\u201d<\/p><\/blockquote>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener noreferrer\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/bitcoin-suddenly-slides-4-as-bofa-predicts-a-20-stock-market-crash\" target=\"_blank\" rel=\"noopener noreferrer\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8220;# Bitcoin suddenly slides 4% as BofA predicts a 20% stock market crash &#8221; The price of Bitcoin (BTC) abruptly dropped 4% from the day\u2019s peak on Oct. 30 as the uncertainty in the stock market intensified. With five days left to the U.S. presidential election, Bank of America (BofA) suggested a 20% drop is&#8230;<\/p>\n","protected":false},"author":1,"featured_media":101095,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s3.cointelegraph.com\/uploads\/2020-10\/d907c03a-d7e2-45fb-826a-627b6f8b5b23.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[77742,74862,74937,73785,70359],"class_list":["post-101094","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-bank-of-america","tag-bitcoin","tag-bitcoin-price","tag-markets","tag-stocks"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/101094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=101094"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/101094\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/101095"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=101094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=101094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=101094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}