Crypto Crash: Why Bitcoin’s Downward Spiral is Just Getting Started! 😱

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So, here we are, folks! The Bitcoin and crypto markets decided to throw themselves a pity party at the start of the week, with our beloved Bitcoin plummeting to a jaw-dropping low of $76,500. 🎉 But wait, it’s not just the crypto world that’s having a meltdown; the US equities market is also joining in on the fun, losing a hefty chunk of its value. Who knew misery loved company? 🙄

Now, let’s get to the juicy bits. Experts are weighing in like they’re on a game show, trying to guess which market will rise from the ashes first. Spoiler alert: it’s not looking good for our digital friends. Enter Burak Kesmeci, the crypto oracle, who’s here to enlighten us on this delightful disaster.

BTC And ETH: The Best Buds of the US Stock Market

In a post that’s more riveting than your average soap opera, Kesmeci spills the tea on why Bitcoin and its crypto pals are unlikely to bounce back before the US stock market does. Apparently, they’re like those friends who can’t help but copy each other’s homework—high correlation and all that jazz.

According to Kesmeci, Bitcoin and Ethereum are practically glued to the S&P 500 index, with correlation scores of 0.85 and 0.95, respectively. It’s like they’re in a toxic relationship, and the chart below is the evidence. 📉

He goes on to say that investors are treating digital assets like they’re just another stock in the US market. So, every time Trump decides to throw a new trade tariff into the mix, the crypto market gets hit with a wave of selling pressure. It’s like watching a bad rom-com where the lead keeps making terrible decisions. 😩

Meanwhile, gold is over there living its best life, hitting new highs while Bitcoin is stuck in the friend zone. Kesmeci also points out that the VIX (the fear index, because who doesn’t love a little anxiety?) is negatively correlated with Bitcoin. So, as fear rises, Bitcoin just keeps falling. It’s a real tragedy, folks. 🎭

And here’s the kicker: the DJI and S&P 500 indices are below the 200-day simple moving average for the first time since October 2023. Kesmeci says these indices need to get their act together and rise above the SMA200 before our dear crypto market can even think about recovering. Talk about a long wait! ⏳

Bitcoin Price At A Glance

As of this moment, Bitcoin is hanging on by a thread at around $84,050, which is a 0.3% increase in the last 24 hours. But don’t get too excited; it’s still down more than 2% for the week. Classic Bitcoin, right? 🙃

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2025-03-16 22:28