The Bitcoin and encryption markets had a serious drop in prices at the beginning of the week, and the premier cryptocurrency dropped to $ 76,500. Interestingly, the digital asset market was not alone in misery. The US stock market also lost much of its value to start the state.
As US President Donald Trump continued to announce trade tariffs, some experts put weight on this extensive market stagnation triggered by economic uncertainty. The prominent Crypto Pundit Burak Kesmeci is one of the latest products to mention about this scenario and predict which market will recover first.
BTC and ETH have a high correlation with the US stock market.
Kesmeci explained why Bitcoin and other cryptocurrencies are almost impossible to recover before the US traditional market in the March 15 post of the X platform. The reasoning of experts’ arguments is based on a high correlation between Cryptocurrency and the US stock market.
KESMECI proves this direct relationship, and the correlation between the S & P 500 index and Bitcoin and Ether Leeum is 0.85 and 0.95, respectively. As emphasized in the chart below, the two largest cryptocurrency shows a high correlation with other US stock indexes, including the Dow Jones Industrial (DJI) average and Russell 2000.
Source: @burak_kesmeci/XAccording to Kesmeci, this trend suggests that investors see digital assets, especially Bitcoin and Ether Leeum from a similar perspective to US stocks. This explains why Trump is experiencing profound sales pressure every time Trump announces a new trade tariff.
On the contrary, you can see the opposite trend in gold, and recently reached the new best. Kesmeci pointed out that the VIX (Fear) index is strongly correlated with Bitcoin, which explains why the flagship cryptocurrency is falling as the electrons rise.
Lastly, the analyst said that the DJI and S & P 500 index is lower than the 200 -day simple moving average (for long -term tracking) for the first time since October 2023. According to KESMECI, the US stock market index should move back to SMA200 before the encryption market recovers.
Bitcoin price at a glance
At the time of this article, Bitcoin’s price was about $ 84,050, up 0.3% over the last 24 hours. According to Coingecko’s data, market leaders have decreased more than 2% last week.
The price of BTC hovering around $84,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Istock’s main image, TradingView chart
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