Investors in Europe are waiting for the ECB's decision

In traditional markets, after one-day yesterday's rapid jump in yields on 10-year US bonds from 1,38%. today they are falling to 1,36% as investors continue to fear a slowdown in economic growth due to the spread of the coronavirus. At the same time, Friday's disappointing report from the US labor market reduced the scale of expectations that Federal Reserve it will soon start limiting the bond purchase program.

In turn, in Europe the indices seem to be falling on Wednesday, prolonging the correction started on Tuesday. The reductions may be linked to lingering concerns about the impact of the coronavirus delta variant on global economic growth. Investors also remain cautious ahead of the Thursday meeting European Central Bankat which officials will debate the pace of bond purchases under the PEPP program.

The level of these purchases could drop to 60 billion euros per month from the current 80 billion, followed by a further decline at the beginning of next year and the end of the program in March 2022. The German Dax index lost about 0,9 percent at noon. and is at the level of 15700 points, while the Euro Stoxx 50 seems to go back under 4200 points, dropping by about 0,8 percent.

Cryptocurrency Crash

Yesterday, Bitcoin (BTC) stood next to the US dollar El Salvador's legal tender. And on the very first day, the inhabitants of this country experienced how significant fluctuations in cryptocurrency prices can be.

Bitcoin lost nearly 20 percent yesterday, falling from around 52 thousand. to approx. 43 thousand dollars. Everything happened very quickly. A similar decline was recorded in May this time, but this time no significant information appeared that could directly affect the change in the valuation of the cryptocurrency. Nor has there been any large influx of coins to exchanges that would subsequently be sold.

Bitcoin is falling, El Salvador is buying

The focus has therefore shifted to the highly leveraged derivatives market, where presumably buyers panicked and closed their trades. Or they could be closed automatically, because there was no cover for their maintenance and the price collapsed due to the snowball effect.

The key level could have been a fall of 50. USD, which could activate the above-average supply, and in total, positions worth about USD 3 billion evaporated from the cryptocurrency market. After the discount, the president of El Salvador said that his country had bought another 150 BTC at an attractive price and already had 550 BTC in total.