Bitcoin and the US Stock Futures Sink After Gold and Silver Plunge
The volatility of the week started at Wall Street when the US stock futures went down with a sell-off over the weekend in cryptocurrencies and half-faked falls in the price of gold and silver. These movements now are spilling over into the financial market producing businessmen with their heads shaken and scrambling to find solutions.
On Sunday evening, Dow Jones, S&P 500, and Nasdaq 100 contracts plummeted and dropped to an early trade. Dow declined by almost 0.7 per cent, and S&P and Nasdaq futures dropped by over 1 per cent, which indicates a rather bumpy beginning of the day on Wall Street.
This sell-off can be traced to a cause that is not hard to identify. Popular precious metals such as gold and silver had started to drop last Friday, thereby erasing years of profits earned in months. Silver, especially, had a historical decline of about 30 per cent or so, or in fact the greatest fall in decades. Gold was also severely hit, losing the majority of its gains.
This decreasing trend in metals prevails.
Analysts are now asserting that these losses have been forced to be sold and margin calls making traders sell other assets such as crypto and stocks. Meanwhile, the largest cryptocurrency, Bitcoin, dropped under its mark of less than 80,000 for the first time in several months.
Jitteriness in the market is being fuelled by uncertainty about the policy of the central bank. Investors are yet to digest the possible effect of future moves by the US Federal Reserve, especially in the wake of the recent news on the nomination of the new Federal Reserve chair that has cast its doubts on the future interest rates and monetary support. A further fall in oil prices by over 4 per cent in the same session was also experienced since the risk mood of commodities was poor. Meanwhile, the US dollar moved marginally upwards, which usually pressures the stocks of other countries, metals or any other risky exchange.
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