Bitcoin (BTC) Stock Market Correlation: The U.S. stock market had in recent times maintained a direct correlation with the Bitcoin (BTC) price. At times when the stock price rallied aggressively, BTC price jumped in a comparatively lower range. In this context, key movements in the S&P 500 Index could potentially mean an impact on crypto prices in the near future. On the other side, the crypto market is yet to recover from the unprecedented bloodbath due to the FTX collapse.
Bitcoin (BTC) Price Drop Soon?
While the current crypto prices are slightly better compared to November 2022 Bitcoin low of $15,700, there is a along way before full recovery. At the current levels, the S&P 500 Index (SPX) is below trendline resistance. Market experts suggest that the Index has generally maintained the trendline resistance. However, if there is a deviation this time around, it could have an adverse impact on BTC price, according to Crypto Quant. Also, the Bitcoin correlation with stock markets has been on a decline in recent times.
“S&P 500 Index is below trendline resistance. There is a possibility of respecting this resistance again. If the stock market fails to break this trendline, there is a possibility that the price of Bitcoin will fall again.”
In a latest, analysts warn of a “surprise scenario” around further Bitcoin (BTC) price drop. Eric Robertsen, Global Head of Research at Standard Chartered, reportedly said BTC price could plunge further by around 70%. If it comes out to be true to at least an extent, it would be catastrophic for the crypto market. As of writing, BTC price stands at $17,106, up 0.40% in the last 24 hours, according to price tracking platform CoinMarketCap.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.