Bitcoin Decouples from Gold, Stocks after Overnight Sell-Off, What’s Next?

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Bitcoin did its own thing during the late Monday trading session. The benchmark cryptocurrency plunged suddenly towards $10,600 after maintaining intraday gains above the $10,800-support all day. The sell-off appeared despite a healthier macroeconomic outlook led by signs of progress in the release of the second COVID-19 stimulus package. US House Democrats released a $2.2 trillion aid that would reinstate $600 weekly unemployment benefits. The revelation followed House Speaker Nancy Pelosi’s commitment to revive stalled negotiations with the White House over the size of the coronavirus stimulus. Breakaway Move Pelosi spoke with US Treasury Secretary Steven Mnuchin on Monday – and the two agreed to continue the conversation on Tuesday. It allowed investors to assume that the Democrats may influence the Republicans to pass a larger package than the earlier-proposed $500 billion. Bitcoin typically reacts positively to the news of stimulus. The cryptocurrency rallied by more than 200 percent from…

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