Bitcoin price (BTC) hit the $9700 resistance level early in Wednesday trading before losing all the gains in the next few hours. Traders profit-taking-strategy and the downtrend in U.S. stock markets hindered the bull-run in cryptocurrency markets.
The majority of digital currencies are in the red today. Bitcoin Cash (BCH) and IOTA (MIOTA) are among the most prominent losers among the top ten crypto coins.
Source Image: coinmarketcap.com
Market pundits are blaming bearish trends in the U.S. stock market for the selloff in cryptocurrency prices. The Dow Jones industrial average lost 400 basis points in Tuesday trading. S&P 500 was down 1.3%, and NASDAQ plunged 1.7%.
Industrial and manufacturing companies that are always viewed as a bellwether for the U.S. financial system posted lower than expected results. Shares of 3M (NYSE:MMM), one of the largest U.S. industrial company, posted its worst daily performance since 2008. The machinery maker Caterpillar has highlighted a bleak economic growth for this year.
Buy Bitcoin on Macro-Economic News Selloff
Although the market is the divided on the correlation between stock and the cryptocurrency markets, bulls are suggesting investors buy bitcoin on any macroeconomic news selloff.
Spencer Bogart, the partner at Blockchain Capital, is among the analysts who recommend investors to keep an eye on the potential buying opportunities.
He said, “Bitcoin remains uncorrelated to traditional asset classes, is more than 50 percent off its highs and has significant upside,” Bogart said. “It feels like a no-brainer from a portfolio management perspective to allocate some capital to crypto.”
Reuters Survey Suggest Strong Enthusiasm
Reuter’s survey indicates the substantial increase in trader’s sentiments towards cryptocurrency market. The poll shows that one in five firms are planning to trade crypto coins in the next twelve months. The change in sentiments is mainly due to increasing regulators role in cryptocurrency markets. Goldman Sach, who previously denounced investing in digital currencies, recently made its first cryptocurrency hire.
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