Bitcoin has followed the broad market lower today as the early positive momentum in the risk trade comes unwound. Shares of Nvidia are down more than 6% following earnings.
Bitcoin daily
Last week, it looked like bitcoin was ready to recoup the July-August decline but this week has seen steady selling. Today there was a strong rebound that nearly erased the Wednesday decline at one point, it it’s all come undone in the past two hours.
For now, there are still a series of higher lows from the August bottom but that would be invalidated by a fall below $57,000.
For the broader market, crypto has been a good leading indicator of sentiment and the latest round of weakness doesn’t bode well. On top of that, September is by far the worst month for stocks in the US over the past 20 years.