Bitcoin wrapped up this past Thanksgiving night with a bloody trading session. The first crypto by market cap was rejected as it made its way to $60,000 and has dropped over 6% in the 24-hour chart. As of press time, BTC trades at $54,084 but seems at risk of further downside.
Besides Bitcoin, the traditional finance market took a hefty dive on news of a recently discovered COVID-19 variant in Africa.
As 2020 and 2021 have shown, Bitcoin shows a high correlation with traditional markets during periods of macroeconomic development. Thus, one of the reasons the benchmark crypto has been trending to the downside as investors could fear a new phase of lockdown across the world to prevent the alleged new variant from spreading.
The U.S. Dollar as measured by the DXY Index has also taken a dive with a 0.71% loss in the 24-hour chart. The currency was showing significant strength since November 10th, when the U.S. Federal Reserve hinted at the beginning of tapering but was rejected at the 97-price mark.
The U.S. dollar rally has been attributed as one of the reasons Bitcoin display weaknesses in the past week. A rejection at these levels could provide BTC’s price with some relief allowing it to make a more convincing rally into $60,000 and uncharted territory if it’s able to prevent more downside in the short term.