NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

BItcoin’s Sudden Drop to $9k Coincides With Fed’s Balance Sheet Contraction

Yashu Gola
Yashu Gola
1 year ago
2 mins read
bitcoin, VanEck

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

  • Bitcoin plunged back towards $9,000 despite showing signs of upside correction in the early Friday session.
  • The latest price correction coincided with the Federal Reserve’s balance sheet contraction that strengthened the US dollar.
  • S&P 500 remained closed on Friday for the Independence Day holiday.

The past 24 hours saw Bitcoin breaking its short-term positive correlation with the S&P 500.

The benchmark cryptocurrency plunged to $9,068, down 2.44 percent from its weekly top established during the Thursday trading session. Its latest decline partially came because of high profit-taking sentiment near the local high. Meanwhile, the downside also took cues from a stronger US dollar.

Bitcoin and US Dollar Correlation

According to data fetched by TradingView.com, the US dollar index is on a two-day winning spree. It has climbed 0.56 percent from its weekly low. Meanwhile, the index’s rise almost coincides with the fall in the Bitcoin price.

bitcoin, cryptocurrency, btcusd, xbtusd, btcuusdt, crypto

Bitcoin's latest plunge surfaced as the US dollar rose against a basket of foreign currencies. Source: TradingView.com

Demand for the US dollar rose as the California, Texas, and Florida reported a daily resurgence in COVID cases by tens of thousands. Investors preferred to move back into the greenback, fearing extended lockdown periods and a potential fall in the US stock market.

Nevertheless, the S&P 500 offset those concerns and closed Thursday 0.45 percent higher. The benchmark index rose on optimistic jobs report by the Department of Labor. It showed that the unemployment rate from 13. percent in May to 11.1 percent in June.

Fed’s Balance Sheet

Despite its rise, the S&P 500 risks falling back on a multitude of macroeconomic concerns. The most important among them all is the Federal Reserve’s contracting balance sheet.

Bitcoin and every small and big index on Wall Street recovered from their March 2020 nadir only after the US central bank announced an unprecedented monetary aid. It injected more than $2 trillion into the economy via the purchase of government and corporate bonds.

But it now appears that the Fed has slowed down it’s spending. Official data shows that the central bank’s balance sheet has contracted by 2.3 percent in the last three weeks. Since June 17, the Fed has reduced its purchasing by as much as $160 billion.

bitcoin, cryptocurrency, btcusd, xbtusd, btcuusdt, crypto, spx, s&p 500

Fed balance sheet against the US dollar and SPX. Source: Federal Reserve

It is the same period that has seen Bitcoin trapped inside a narrow trading range. The cryptocurrency failed to secure a breakout above $9,500 and below $9,000.

The Fed’s stimulus policy will expire at the end of July.

Tweet123Share210ShareSend
Yashu Gola
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN.

Read more

Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Close

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

L’ultimo Rally di Bitcoin è Sostenuto da un Potere d’Acquisto più Forte: Report

I dati del Bitcoin Stablecoin Supply Ratio suggeriscono che oggi gli investitori hanno un potere d’acquisto più forte rispetto al...

clararosati 1 hour ago
Dogecoin koers stijgt 9% na golden cross op uurgrafiek

Dogecoin koers stijgt 9% na golden cross op uurgrafiek

De Dogecoin koers maakte een sterke start in juli met flinke stijgingen. Dit volgde nadat een golden cross patroon te...

Lars Diederiksen 1 hour ago
Altcoin

Altcoin Season Not Remotely Close, Bitcoin Dominance Still Too High: Market Expert Says

The wait for altcoin season continues as the crypto market is still showing signs of bearish movement. Expectations are high...

Scott Matherson 2 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

$SNORT

ChatGPT napoveduje 10x rast žetona Snorter

tanjapotocnik 14 minutes ago
DOGECOIN

Dogecoin cena gre še višje, TOKEN6900 bo eksplodiral

tanjapotocnik 28 minutes ago
Dogecoin price news

The $1 Dogecoin Dream Is Alive: Chartist Lays Out Parabolic Scenario

Jake Simmons 36 minutes ago

Premium Sponsors

Press Releases

  • Dự Đoán Giá Fartcoin: Meme Coin Tiềm Năng FARTCOIN...

    3 hours ago
  • CertiK Validates FUNToken’s

    CertiK Validates FUNToken’s Smart Contract Strength With...

    3 hours ago
  • Explore Potential Coins

    Peter Thiel của PayPal Hậu Thuẫn Ngân Hàng Crypto...

    3 hours ago
  • Altcoin season uitgesteld? Bitcoin dominantie houdt kapitaal weg van XRP, SOL en ADA

    Những Altcoin Nên Mua Tháng 7 – USELESS, BROCCOLI...

    4 hours ago
  • Cloud Mining

    Free QFSCOIN Cloud Mining Regulated By US Law Launches BTC...

    4 hours ago

Newsletter

Be the first to get the latest important crypto news & events to your inbox.

  • This field is for validation purposes and should be left unchanged.

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.