{"id":438917,"date":"2020-09-18T17:00:03","date_gmt":"2020-09-18T17:00:03","guid":{"rendered":"https:\/\/uniquehot.com\/?p=438917"},"modified":"2024-06-11T14:16:35","modified_gmt":"2024-06-11T14:16:35","slug":"us-stock-indices-dow-jones-spx-tank-taking-down-bitcoin-in-tandem","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/us-stock-indices-dow-jones-spx-tank-taking-down-bitcoin-in-tandem\/","title":{"rendered":"US Stock Indices Dow Jones, SPX Tank, Taking Down Bitcoin In Tandem"},"content":{"rendered":"
Bitcoin has been collapsing after failing to hold $11,000<\/a>, and it could be thanks to negative sentiment surrounding a tanking stock market that’s taking the crypto market down in tandem.<\/p>\n Here’s why things could get really bad for Bitcoin and the rest of the crypto space if major US stock indices continue to plunge.<\/p>\n The S&P 500 is down more than 7% from local highs<\/a>. The Dow Jones Industrial Average, has also lost 5% from its recent local peak high, faring slightly better than the index from Standard and Poor’s.<\/p>\n The stock market is dropping and dropping hard after several major stock indices set new all-time highs last month.<\/p>\n As soon as the month turned, however, stocks turned downward, and so did Bitcoin<\/a>.<\/p>\n Related Reading | Bitcoin Collapse Retests Key Weekly Level Never Lost During Last Bull Run<\/a><\/strong><\/em><\/p>\n The top crypto asset by market cap actually led the market wide dump by almost 24 hours, but the stock market followed closely behind, and now has since taken over as the primary drive behind the downside momentum.<\/p>\n Making matters worse for Bitcoin and the rest of crypto, is the fact that the ongoing correlation<\/a> between the disruptive asset class and traditional equites has yet to be shaken off.<\/p>\n The correlation – if stocks see another Black Thursday style fall \u2013 could drag Bitcoin down further in tandem.<\/p>\n <\/p>\n The leading cryptocurrency by market cap set a local high at $12,400 but since came crashing down. After a valiant defense by bulls at to hold strong at support below $10,000<\/a>. the cryptocurrency quickly found itself trading back at $11,000.<\/p>\n The recent rally, however, may have been a bearish retest of support turned resistance<\/a>, just in time for the stock market to take the crypto market down further.<\/p>\n The reason for the sudden rise in turbulence across the stock market, could be due to a spooky-sounding event called the quadruple witching.<\/p>\nMajor US Stock Indices S&P 500, Dow Jones, Drop On Today’s Quadruple Witching<\/h2>\n
BTCUSD Versus SPX Versus DJI Correlation Chart Comparison | Source: TradingView<\/a><\/pre>\n
Bitcoin Could Get Dragged Back Down To Black Thursday Lows If Stocks Tumble Again<\/h2>\n