• Press Releases
    • Submit a press release
    • Read All
  • Advertise
  • Contact us
Crypto.com Logo Crypto.com Logo
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN
Bitcoinist.com
No Result
View All Result
Nexo

Chilling 32% Crash Prediction for S&P 500 Puts Bitcoin Price Rally At Risk

Yashu Gola by Yashu Gola
2 years ago
in Bitcoin
0
Advertisement
  • Bitcoin is looking at red flags in its year-to-date price rally because of its short-term correlation with the S&P 500 index.
  • Doug Ramsey, the chief investment officer of the Leuthold Group, predicts that the U.S. benchmark is at the risk of falling by 32 percent.
  • The prediction leaves Bitcoin under serious downside risks, doubled further after concerns about a major sell-off after halving.

Bitcoin last week rallied above $10,000, eking out bigger intraday gains than the S&P 500 index. So does that suffice the cryptocurrency would fall even harder if the U.S. benchmark falls alongside? It appears so.

The bull run to $10,000-levels stands wiped-off on Monday. The bitcoin-to-dollar exchange rate earlier corrected by as much as 20 percent, plunging to near $8,100 amidst a massive sell-off. The downside move took place on a weekend, reflecting that the cryptocurrency was not taking directional cues from the closed S&P 500.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
bitcoin, btcusd, cryptocurrency, crypto, s&p 500
Bitcoin and S&P 500 correlation | Source: TradingView.com

It was more profit-taking. Big traders pumped the bitcoin price amidst the halving FOMO, creating an illusion of a price rally led by strong demand. Small traders followed suit and purchased the cryptocurrency at local tops. So it appears, the big players conveniently sold bitcoin en masse above $10,000, causing a massive bearish correction. The smaller ones suffered.

These cycles are very common in the cryptocurrency market. Many top analysts have already started asking traders to look at Bitcoin’s bigger picture, its price sitting atop a $100,000-valuation sometime in 2021 because of a historically accurate model.

Meanwhile, a new conflict is emerging in traditional markets.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

S&P 500 Risks

Doug Ramsey, the chief investment officer of the Leuthold Group, lately predicted that the S&P 500 index could undergo a 32 percent correction. The veteran pitted the U.S. benchmark’s enormous rally after March sell-off against the economic uncertainties of the Coronavirus times, adding that the “reality widened” further the poor jobs report released Friday.

The US Bureau of Labor Statistics found that the country’s unemployment rate spiked by 14.7 percent in April as employers cut about 20.5 million jobs.

bitcoin, btcusd, cryptocurrency, crypto, s&p 500
U.S. unemployment rate

Mr. Ramsey further spotted a series of red flags in the S&P 500’s rally. He noted that all the sector that signals to an economic revival are not behind the latest gains. They include transports and financials that contributed hugely to the index during the previous post-crisis rallies.

The statistical difference put the S&P 500 under the risks of deeper downside moves. And it is equally bad for Bitcoin, a non-correlated asset that has been tailing the U.S. equities moves during the Covid19 crisis.

Bitcoin and Profit-taking

In March, investors used Bitcoin’s year-to-date profits to cover their losses on Wall Street. As a result, the price fell by as much as 50-percent overnight. The S&P 500’s downside prediction, therefore, creates a similar scenario.

Bitcoin’s recovery has led it 22 percent higher on a YTD timeframe. The performance stands better than any traditional stock market, including the Dow Jones and Nasdaq Composite. A fall in the Wall Street Index, coupled with miners’ intentions to sell bitcoin after halving to cover additional operational costs, puts a burden on the cryptocurrency.

Photo by Nosiuol on Unsplash

ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Yashu Gola

Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.

Related Posts

Bitcoin

Bitcoin Legalization Pushed By Mexican Senator, Despite Central Bank’s Opposition

15 hours ago
Oslo Freedom Forum, Lyn Alden screenshot

3 Lessons From The Oslo Freedom Forum: BTC Is Different – Neigut, Alden, Feinstein

24 hours ago
Bitcoin

Bitcoin Funding Rate Turns Deep Red, Short Squeeze Soon?

1 day ago
El Salvador

El Salvador, Unfazed By The Bear Market, Buys 80 Bitcoin – Will Others Do The Same?

2 days ago
Bitcoin Trading Volume Sinks Down Almost 60% In 9 Days

Bitcoin Trading Volume Sinks Down Almost 60% In 9 Days

3 days ago
North Korean Hackers

North Korean Hackers Suspected Of Perpetrating $100 Million Harmony Attack

3 days ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS
  • NAGA

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

Pages

  • Contact us
  • Editorial Policy
  • Advertise
  • Crypto Prices from Nomics
© 2022 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
  • Industry
    • Press releases
  • Price
    • Bitcoin Price
    • Ethereum Price
    • Litecoin Price
    • Binance Coin Price
    • Monero Price
    • MimbleWimbleCoin Price
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Btcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Play Games
  • BET&WIN

© 2021 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.