The thumped U.S. stock market enters the final trading session of the week with very little hope of recovering from its previous downward correction. Instead, the situation of Trump’s trade war seems poised to cause further damage to the Dow and its peers. However, the mood is quite positive in the digital currency space, with Bitcoin (BTC) and other top digital currencies seeing a slight recovery.
The futures of Dow Jones Industrial Average recently plunged by 0.39 percent or 97 points; this implies an opening bell decline of 102.53 points. Dow futures was trading lower earlier this morning, but it surged over the market open.
Nasdaq futures and S&P 500 futures were also in the red, with Nasdaq declining by as much as 0.7 percent and S&P by 0.44 percent. On Thursday, the stock market experienced some downward movements after series of reports that suggested that China and the U.S. would not be present at the new trade agreement before hefty tariffs start at the beginning of March.
Dow ended the day at 25,169, down by 0.87 percent or 220.77 points, after trading over 350 points in the red earlier in the day. Nasdaq declined by 1.18 percent while S&P 500 plunged by 0.94 percent.
The Trade War of China and the U.S. Affects the Stock Market
On Friday, the trade war between China and the United States continued to have an enormous effect on the pre-bell futures markets. What is more troubling is that Donald Trump – the President of the U.S. confirmed that he will not meet with Xi Jinping – the President of China – before the deadline of the trade deal on the 1st of March.
The U.S President initially said he won’t sign a deal until himself and the President of China had resolved several difficult sticking points between both nations. Rather, he will channel his focus on preparing for a second summit with Kin Jong Un – the dictator of North Korea – which would hold on the 27th to 28th of February.
Bitcoin (BTC) Price Today – BTC / USD
As per the Wall Street Journal, China and the United States have not even drafted an agreement that entails areas of disagreement and agreement, irrespective of the fact that Robert Lighthizer (U.S. Trade Representative) and Steven Mnuchin (Treasury Secretary) are just a couple of days away from going to China for a new round of negotiations.
Bitcoin (BTC) Relative Strength Index at Historically Low Level
According to a recent report by CCN, Fundstrat – Wall Street strategy company – had said that the near-term outlook for Bitcoin (BTC) and the rest of the digital currencies in the market remain weak. Unless the value of Bitcoin (BTC) could remain over the $3,100 level, the value of the coin would likely plunge as low as $2,270 before the pain is over – says Robert Sluymer, a technical analyst.
That price forecast for Bitcoin (BTC) seems to be on the same page with the near-term forecast published by BitOoda – a digital currency brokerage – who predicted $2,400 for Bitcoin (BTC). Nevertheless, the analysis of Sluymer also highlighted that the value of Bitcoin (BTC) is historically oversold. This suggests that the world’s largest digital currency by market cap – Bitcoin (BTC) – is trading far below its true value. The digital currency is trading at $3,693 at the time of writing after a decline of less than one percent over the past twenty-four hours.