Stock markets fall worldwide as Bitcoin price breaks historic record in Brazil

Lack of economic stimulus approval in the United States and arrival of the second wave of New Coronavirus worry traditional financial market.

Stock markets fall worldwide as Bitcoin price breaks historic record in BrazilNOTÍCIAS
The world’s major stock exchanges Crypto Investor are falling on Wednesday (21), unlike Bitcoin which triggered a wave of recent market appreciation.

While some indices are awaiting approval of an economic stimulus in the United States, the Bitcoin is appreciating in the market, and has risen more than 6% in the last 24 hours.

Thus, the value achieved in US dollars by Bitcoin already represents the record price that cryptomeda had in Brazil. Thus, with the valuation of BTC, the price reached more than R$ 70,000, as reported by the Cointelegraph.

Stock markets melt
Stock exchanges around the world began this Wednesday (21) with a slight appreciation, but the stalemate in the approval of a US economic stimulus caused the main economic indices to fall.

In addition, the great concern about a second wave of New Coronavirus in Europe brought down indices linked to the traditional financial market.

As a result, indices such as the Euro Stoxx accumulated a decline of 1.46% after the impact of the US economic stimulus which has not yet been approved, in addition to the second wave of New Coronavirus. In this case, the Euro Stoxx index represents shares in 50 major companies in Europe.

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The same can be seen in indices such as the DAX of the German stock exchange. With a fall of 1.41% on this Wednesday (21), the index representing the 30 largest companies in Germany (with listed capital) also reverberated the return of the pandemic and the US economic stalemate.

On the other hand, Asian stock exchanges do not face the same negative performance as other stock exchanges around the world. In addition, the Ibovespa index (IBOV) of the stock exchange in Brazil also counters the downward movement in other countries. In the case of the Brazilian stock exchange, there has so far been a 0.44% growth in the Ibovespa index.

US economic stimulus
The traditional financial market must respond positively to the economic stimulus that the United States intends to approve shortly. According to President Donald Trump’s proposal, this stimulus should comprise something like US$ 1.9 trillion, or about R$ 10 trillion.

On the other hand, the opposition to Trump’s government advocates an even bigger economic stimulus package. According to the Democrats‘ project, the United States should inject US$2.2 trillion into the economy, or R$12.3 trillion.

On Tuesday, President Donald Trump met with opposition leader Nancy Pelosi in an attempt to approve the economic stimulus for the country. However, there is resistance in Congress to approve the stimulus. According to Senator and Republican leader Mitch McConnell, the R$10 trillion package should only be approved after the US elections.

Bitcoin breaks record

While stock exchanges around the world feel the impact of the lack of approval of the US trillionaire stimulus, the price of Bitcoin has unleashed a wave of appreciation recently that has made cryptomoeda break a historic record in Brazil.

Thus, on Wednesday (21) the price of Bitcoin renewed its historic high in the country, after breaking the R$ 70,000 value that had not been reached since December 16, 2017.
Price of Bitcoin on Wednesday 21 (Reproduction/CoinMarketCap)

Although Bitcoin is far from reaching the record price in dollars, in Brazil this has been possible with the devaluation of the Brazilian real recently. If at the end of 2017 the dollar was traded for R$ 3.31 against the real, today this value corresponds to R$ 5.59, which justifies the record price of the Bitcoin in Brazil.