At the beginning of the week, Bitcoin and Crypto marked a solemn deterioration of prices, and the most significant cryptocurrency fell to the lowest level of 76,500 USD. Interestingly, the digital assets market was not alone in poverty, because the United States stock market also lost a significant part of its value to start a week.
Several experts considered the widespread slowdown of the market caused by economic uncertainty, because the President of the United States Donald Trump still introduces trading tariffs to Wola. The outstanding cryptocurrencies beetroot Kesmeci is one of the newest ones that commented on this scenario, anticipating which market will recover first.
BTC and ETH show a high correlation with the American stock market
In the post of March 15 on the X, Kesmeci platform explained Why Bitcoin and other cryptocurrencies are almost impossible to recover in front of established US markets. The reasoning of the expert’s claim is based on a high correlation between cryptocurrency and the American action market.
By proving this direct relationship, Kesmeci revealed the correlation of Bitcoin and Ethereum with S&P 500 index (Considered the best indicator of the American market market) is 0.85 and 0.95, respectively. As emphasized in the chart below, the two largest cryptocurrencies also show a high correlation with other listed indicators in the USA, including the average Dow Jones Industrial (DJI) and Russell 2000.
Source: @burak_kesmeci/X
According to Kesmeci, this trend suggests that investors perceive digital resources, especially bitcoins and ethereum, in a similar featherlight as actions in the United States. This explains why the cryptographic market has deep sales pressure, whenever Trump announces recent trading tariffs.
Unlike the opposite trend, you can see with gold, which has reached a recent high level in recent days. Kesmeci noticed that the VIX (fear) indicator is strongly correlated with Bitcoin, which explains why the flagship cryptocurrency falls when the first one grows.
Finally, the analyst revealed that the DJI and S&P 500 indexes are below the 200-day straight movable average (used for long-term trend tracking) for the first time since October 2023. According to Kesmeci, these indicators of the US stock market will have to exceed SMA200 again before the cryptographic market has regained.
Bitcoin price at first glance
In this letter, the Bitcoin price is about USD 84,050, which reflects an boost of 0.3% in the last 24 hours. According to data, Coingecko market leader fell by more than 2% last week.
The price of BTC hovering around $84,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Recommended photo from Istock, chart from TradingView
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