Bitcoin, gold, and the S&P 500 all sharply dropped today, causing traders to fear BTC is on the verge of a trend reversal.
The price of Bitcoin (BTC), the S&P 500 index, and gold all fell simultaneously on Sept. 3. The sentiment around the markets remains cautiously negative after the drop.
Two factors likely triggered the abrupt decline of Bitcoin by over 8% on the day. First, miners sold off unusually large amounts of BTC in a short period. Second, the U.S. dollar index has started to recover from a key multi-year support area.
Analysts also attribute the fall of gold to the rising U.S. dollar. The European Central Bank’s warning against the surging euro caused investors to become cautious about the euro.