On July 10, Bitcoin was trading around £7,340.22 that seems to be under pressure by happenings in China and the United States.
Starting with China:
The Shanghai Stock Exchange and the Shenzhen Stock Exchange offers the capital-based stock market index for replication of trading performance of topmost 300 stocks, which is called as CSI 300.
A day before, i.e. on July 9, after about nine trading sessions, the CSI 300 closed at 4840.77. It implies that trading has truant up by 17.78 per cent.
If we look at three days before that closure, on July 6, the CSI 300 closed at 4670.09, which is 250 points above. It also implies that the trading was truanted up by 23.45 per cent.
A report in Bloomberg said that “the Chinese government seems to be deciding that the stock market of country was overheating and they have warned with the intention.” It was about not to replay the wrong-footing of the stock market boom scale, and bosom severity as that happened in 2015.
According to the report, “China Economic Times informed regarding the threats of a ‘crazed’ steer market, while Caixin stated that governors had suggested mutual fund companies to stopple the size of fresh products.”
The cooling of stock market viewpoint could affect the Bitcoin price because of the quantity of BTC (Bitcoin) bought by Chinese retail and institutional consumers through Tether and OTC desks as the richer they sense, the more probably they will consider in a more risky asset level like Bitcoin.
Talking about the United States:
If we talk about the U.S. economy and stock, they are affected by two main factors:
- The results of the U.S. November 2020 election
- The worsening of COVID-19 and management
At this time, the tentative nominee of the Democratic Party was Joe Biden who is leading in most of the election’s polls. Joe Biden has proposed before the elections that he is planning to increase the corporation tax from 21 per cent to 28 per cent for ending the capitalism of shareholders.
In such a case, most of the investors were in fear that if he were elected as U.S. president, it would be bad for the stock market.
In Pennsylvania, Joe Bin spoke to an event that “During the COVID-19 crisis, Donald Trump has not focused on you and your families, but focused only on the Dow and Nasdaq stock markets.
He added that “If I were elected to be the president, I will focus on the middle-class families, the working families and not on the rich investor class.” It was deeply against the cryptocurrency investors and were not in favour of the polls he got in the election. During the COVID-19 pandemic, the three main states that face the worst situations are Florida, California, and Texas. As no one in the U.S. agreed on the proper way of controlling the COVID-19 spread, so, the situations get worse more significantly than expected. There was lockdown that badly impacts the confidence of users and the U.S. companies’ financial future