Skip to main content

Why Bitcoin And Crypto Will Not Recover Before US Equities Market: Expert

The Bitcoin and crypto markets suffered severe price downturns at the beginning of the week, with the premier cryptocurrency falling to a low of $76,500. Interestingly, the digital assets market was not alone in the misery, as the United States equities market also lost a significant portion of its value to kick off the week.

Several experts have weighed in on this widespread market downturn triggered by the economic uncertainty, as United States President Donald Trump continues to roll out trade tariffs at will. Prominent crypto pundit Burak Kesmeci is one of the latest to comment on this scenario, predicting which market will recover first.

BTC And ETH Exhibit High Correlation With US Stock Market

In a March 15 post on the X platform, Kesmeci explained why it is almost impossible for Bitcoin and other cryptocurrencies to recover before the US traditional markets. The reasoning behind the expert’s assertion is based on the high correlation between cryptocurrency and the US stock market.

Proving this direct relationship, Kesmeci revealed Bitcoin’s and Ethereum’s correlation with the S&P 500 index (regarded as the best gauge of US equities market performance) stands at 0.85 and 0.95, respectively. As highlighted in the chart below, the two largest cryptocurrencies also exhibit a high correlation with other US stock market indices, including the Dow Jones Industrial (DJI) Average and Russell 2000.

Image

According to Kesmeci, this trend suggests that investors view digital assets, especially Bitcoin and Ethereum, in a similar light as stocks in the United States. This explains why the crypto market experiences profound selling pressure whenever Trump announces new trade tariffs.

Contrarily, an opposite trend can be seen with gold, which has reached a new high in recent days. Kesmeci noted that the VIX (fear) index is strongly negatively correlated with Bitcoin, which explains why the flagship cryptocurrency is falling as the former is rising.

Finally, the analyst revealed that the DJI and S&P 500 indices are below the 200-day simple moving average (used for long-term trend tracking) for the first time since October 2023. According to Kesmeci, these US stock market indices would need to move above the SMA200 again before the crypto market would recover.

Bitcoin Price At A Glance

As of this writing, the price of Bitcoin stands at around $84,050, reflecting a 0.3% increase in the past 24 hours. According to data from CoinGecko, the market leader is down by more than 2% in the past week.

Bitcoin



from Bitcoinist.com https://ift.tt/ha80wRF
Labels:

Comments

Post a Comment

Popular posts from this blog

Bitcoin ETFs Post Second Straight Week Of $500 Million Outflow — Details

The US-based spot Bitcoin ETFs (exchange-traded funds) recorded their second consecutive week of significant outflows over the last five-day trading period. This recent run of disappointing performances reflects the ongoing shift in investor sentiment in the United States. Over the past year, strong inflows into the US Bitcoin ETF market have constantly been associated with positive action for the BTC price. Fittingly, the price of Bitcoin has been consolidating over the past few weeks, struggling to pick up any real momentum. Bitcoin ETFs Record Fourth Consecutive Outflow Day According to the latest market data , the US Bitcoin ETFs registered a total daily outflow of $62.77 million on Friday, February 21. This latest round of withdrawals marked the fourth straight day (and the eighth day in the last nine trading days) that the crypto-based products would witness a net capital outflow. The Grayscale Bitcoin Trust (with the ticker GBTC) accounted for a larger percentage of Friday’...
Post a Comment
Read more

Bitcoin Remains Range-Bound As Volatility Declines – Analyst Explains Price Action

Bitcoin has experienced frustrating price action in recent weeks, leaving investors impatient about its short-term direction. The price has been testing crucial supply levels between $98K and $100K, struggling to break out as uncertainty dominates the market. The lack of a clear move has led to speculation about whether BTC is preparing for a breakout or another correction. Adding to the uncertainty, the market was hit by negative news on Friday when crypto exchange Bybit was hacked, resulting in the theft of $1.4 billion in ETH. The incident caused fear and volatility, briefly dragging prices lower. However, Bybit responded quickly to reassure investors, easing some of the initial panic and stabilizing the market. Despite this, Bitcoin continues to consolidate in a tight range. Crypto expert Daan shared an analysis on X, noting that BTC is still ranging while volatility is steadily decreasing. As price compression increases, traders are on high alert for a potential explosive move....
Post a Comment
Read more

OpenSea Dodges A Bullet As SEC Drops Investigation—Details

In a move that many in the crypto industry view as a positive signal, the US Securities and Exchange Commission (SEC) has officially discontinued its investigation into OpenSea, the leading NFT marketplace. This decision concludes months of uncertainty regarding the regulatory status of NFTs and their classification under US securities laws. SEC Decision Signals A Shift On February 21, 2025, Devin Finzer, the CEO and co-founder of OpenSea, said the SEC will not take any enforcement action against the firm. This comes following the August 2024 Wells Notice to OpenSea issued by the SEC, which indicated the possibility of legal action on alleged unregistered securities offenses. The outcome of this case suggests a possible shift in the way authorities handle NFTs, therefore affecting the whole scene of digital assets. For the industry, this outcome has been seen as a major turning point. Though they are in rivalry with OpenSea, Chris Akhavan, the Chief Business Officer of Magic Eden,...
Post a Comment
Read more