Price Of Bitcoin Down 5.4% To $43,000

Cryptocurrency investors have been bearish recently as prices of bitcoin sank 5.4% to around $43,000 per unit, the lowest in three weeks, according to Coindesk on Monday. The cryptocurrency has also already declined by nearly a quarter so far this week. The entire market capitalization of all the digital assets fell more than 8% Sunday to $1.25 trillion. The bitcoin and cryptocurrency market in general has shed roughly $400 billion since registering new highs last week as unease spread among traders.

Cryptocurrency asset markets were in the red across the board. Ether reached a low of $1,305, falling around 8%, while the native Cardano blockchain ADA - a surprise winner in recent days - lost 17% from a peak of $1.48 and is now trading around $1.21, CoinDesk 20 figures show. ADA is currently the third-biggest cryptocurrency in terms of market cap. Tether, on the other hand, now holds the fourth spot and next to it is binance coin trading for $197 per unit. Bitcoin's crash may be largely related to increasing bond yields and losses in the world's stock markets. The U.S. 10-year Treasury yield soared to 1.60% in a one-year high Friday, Coindesk said. Bitcoin is volatile. In late 2017, the cryptocurrency 's price rallied to around $20,000 before diving to $3,000 one year later. Last year, its price fell below $4,000 in March before rising again through the summer. Bitcoin began its latest bull run in October, breaking past its 2017 high in December as institutional investors showed renewed enthusiasm in virtual assets. "Many companies have cozied up to bitcoin in order to associate themselves with its technological mystique...as ESG funds start to flee Bitcoin, its price will begin a downward spiral. Stay away," Bloomberg quoted BCA Research Inc.'s Chief Global Strategist Peter Berezin as saying.

Markets react to Trump’s diagnosis

US stocks ended a choppy session lower on Friday as investors reacted to news of President Donald Trump and first lady Melania Trump testing positive for the coronavirus. The Dow Jones Industrial Average lost 134.09 points, 0.5 percent, to 27,682.81, with the S&P 500 index retreating 32.36 points, or 1 percent, to 3,348.44. The Nasdaq Composite Index fell 251.49 points, or 2.2 percent, to end the day at 11,075.02.

European markets meanwhile closed higher, reversing earlier losses and capping another volatile week as the closing bell struck before the wave of selling overtook their peers across the Atlantic. The pan-European STOXX 600 index added 0.3 percent and the UK’s FTSE 100 gained 0.4 percent. Investors held onto hopes of more US stimulus after data emerged showing September Job Growth slowing more than expected in the world’s largest economy.

Maltese markets ended lower, with the MSE Equity Total Return Index closing down 0.33 percent to €7,276.329 on very thin volumes. Only three equities traded, with Bank of Valletta Plc closing unchanged, while Trident Estates Plc dropped 3.33 percent to €1.45 and Malta International Airport Plc lost 2.54 percent to €4.60.

Trump’s recovery from COVID-19

All eyes are currently on how a potential deterioration in President Donald Trump’s health could impact asset prices in coming weeks, as the U.S. leader remains hospitalized after being diagnosed with COVID-19. Many investors are concerned that a serious decline in Trump’s health less than a month before Americans go to the polls on the 3rd of November could roil a U.S. stock market that recently notched its worst monthly performance since its selloff in March while causing turbulence in other assets.

Trump’s diagnosis has intensified the spotlight on the fiscal stimulus talks in Washington, with investors saying agreement on another aid package could act as a stabilizing force on markets in the face of election-related uncertainty.

U.S. House of Representatives Speaker Nancy Pelosi, a Democrat, said on Friday that negotiations were continuing, but she is waiting for a response from the White House on key areas.