Why is Bitcoin falling? Shaken by US stock markets

Cryptocurrencies, especially Bitcoin, retreated after US stock exchanges opened with a decline. Bitcoin, which was above 69 thousand dollars during the day, fell below 67 thousand dollars.

Bitcoin started the new week with a decline. While the number one cryptocurrency was trading above $69,500, it fell to $66 thousand 840 in the evening.

The decline in Bitcoin was in parallel with the withdrawal of US exchanges. US markets opened the week with a decline, where investors are waiting for the balance sheets of big companies. The S&P 500 index lost 0.65 percent, the Dow Jones index by 0.8 percent and the Nasdaq Composite index by 0.6 percent.

“Investors started to think the Fed would act slower”

On the other hand, the yield of 10-year US bonds increased by 9 points to 4,168 percent. Speaking to CNBC, CFRA chief investment strategist Sam Stovall said, "Bond yields continue to increase. Investors also think that the Fed will be slower in lowering interest rates as the economy continues to remain resilient. It will probably be more difficult for the Fed to reduce the inflation rate to the level of 2 percent it targets next year or more recently," he commented.

A prediction shared by Goldman Sachs strategists on Friday also resonated on Wall Street. In the analysis published by the bank, it was suggested that the S&P 500 will provide a nominal return of only 3 percent per year per year in the next 10 years. The average in the last 10 years was 13 percent. In addition, it was emphasized that the index is 72 percent likely to lag behind US Treasury bonds by 2034. “Investors should be prepared for the overall performance of their stocks for the next decade to be close to the lower limit,” the report said.