BTC Can Fall Another 20% Due to Its Correlation With S&P 500

CoingapePublicado em 2022-09-14Última atualização em 2022-09-15

Resumo

Bitcoin’s price crash came alongside that of the S&P 500 dropping 4.5% and slipping under $4,000.

Following the higher-than-expected CPI inflation data on Tuesday, Bitcoin and the broader crypto market witnessed a sharp fall. Currently, Bitcoin is trading at 8.4% over the last 24 hours holding just above its crucial support of $20,000.
Bitcoin’s price crash came alongside that of the S&P 500 dropping 4.5% and slipping under $4,000. As on-chain data provider Santiment explains:
After a brutal #CPI report on disappointing inflation news Tuesday, #Bitcoin fell alongside the #SP500‘s biggest daily drop in two years. The correlation between the sectors remains high, and #crypto typically thrives best with zero #equity reliance.

Courtesy: Santiment As we know, Bitcoin has been showing a greater correlation with the S&P 500 here. As long as Bitcoin continues to follow the equity markets it is likely to stay in the bear’s grip going ahead.
Bitcoin (BTC) Can Correct Another 20%
If BTC continues to follow its correlation with S&P 500, another 20% drop to $16,000 is very much likely. Jurrien Timmer, director of global macro at Fidelity said:
If a 14x forward multiple is the correct valuation, then simple math will tell us that the fair value for the S&P 500 is 3200-3400 at an EPS of $230. This suggests that this bear market is not yet over.

Courtesy: Fidelity Just as the news of U.S. CPI inflation came on Tuesday, the Bitcoin Fear & Greed Index slid from 34/100 to 27/100. However, it has still not entered the “extreme fear” zone which shows some kind of investor resilience at this point.
Once again the news of inflation prevents Bitcoin from crossing its 200-day moving average (DMA), a zone of crucial resistance for Bitcoin this year.
Along with Bitcoin, several other altcoins have also corrected. A day ahead of the Merge event, Ethereum (ETH) has once again tanked 7% moving to $1,600 levels. As the Merge approaches closer, ETH has come under some selling pressure by following “sell the news” kind of momentum.

Leituras Relacionadas

Markets eye Bank of Japan meeting on Friday as yen repeats 40-year US dollar lows

The Japanese yen is nearing new 40-year lows against the US dollar, with USD/JPY approaching 164, as markets focus on the Bank of Japan's (BoJ) upcoming interest rate meeting on July 31. Current rates stand at 1%, their highest since 1995, with near-certain expectations for a hold. The yen's role as a major global funding currency means BoJ policy has significant worldwide impact. Analysts warn that the persistent yen weakness risks a sudden unwind of the massive yen carry trade—a key source of liquidity for markets, including crypto. Such an unwind, potentially triggered by BoJ policy shifts aimed at stabilizing the currency, could spark a rapid liquidity crunch, echoing a disruptive event from 2024. The BoJ has indicated future rate hikes are likely to continue, noting that exchange rate movements now have a greater potential to affect inflation and consumer prices.

cointelegraphHá 1m

Markets eye Bank of Japan meeting on Friday as yen repeats 40-year US dollar lows

cointelegraphHá 1m

Institutional Investors Shift Course: Data Shows They're Selling Bitcoin and Switching to These Altcoins!

Institutional Investors Shift Directions: Data Reveals Bitcoin Outflows and Rotation into Altcoins Amidst ongoing volatility in Bitcoin and altcoin prices, a notable shift in capital flows within spot ETFs has emerged. US spot Bitcoin ETFs have experienced net outflows for three consecutive days. On July 27th, data from Farside Investors showed net outflows of approximately $11.6 million from these funds, primarily led by BlackRock's IBIT ($8.8M) and Fidelity's FBTC ($2.8M). However, the pace of outflows is slowing. Conversely, the Ethereum ETF segment saw a reversal, with a net inflow of roughly $11.7 million on the same day. This entire inflow was attributed to BlackRock's ETHA fund. In the broader altcoin ETF space, spot Solana ETFs recorded a net inflow of $1 million, while the HYPE ETF saw a $2.9 million outflow. XRP ETFs showed no significant activity. This data suggests a potential rotation of institutional capital from Bitcoin towards Ethereum and select altcoins like Solana. *This is not investment advice.

cryptonews.ruHá 3m

Institutional Investors Shift Course: Data Shows They're Selling Bitcoin and Switching to These Altcoins!

cryptonews.ruHá 3m

Super Storage Week, How to Value It?

"Super Memory Week: How to Value It?" The week of July 27th marked a pivotal moment for the global memory chip market. On Monday, ChangXin Memory Technology (CXMT, 688825.SH) debuted on the Shanghai STAR Market, with its share price experiencing high volatility and settling around 49 yuan, resulting in a massive market capitalization of over 3.2 trillion yuan. This valuation far exceeds traditional models, as the market priced in CXMT's future potential as China's first large-scale DRAM producer rather than just current fundamentals. This event signaled that China's memory industry is transitioning from a cycle follower to a significant variable in global market valuations. The week also saw major earnings reports from South Korean giants SK Hynix and Samsung Electronics, which highlighted strong profits driven by AI memory demand but also raised questions about future capacity expansion and the cycle's sustainability. The core debate centers on CXMT's true worth: is it based on immediate profits, the current DRAM boom, or China's strategic potential in semiconductors over the next decade? While CXMT has rapidly grown to become the world's fourth major DRAM player, gaps remain with incumbents in profitability, advanced products (like HBM), and technology ecosystems. The divergent market reactions underscored the valuation challenge. Chinese markets priced CXMT for its scarcity and national strategic importance, while overseas markets began to reprice global chip stocks, factoring in potential future competition from Chinese capacity expansion. Ultimately, CXMT's valuation hinges on its ability to convert its massive financing and market-assigned "option value" into tangible technological progress, yield improvements, capacity, and sustained profits in the coming quarters and years.

marsbitHá 7m

marsbitHá 7m

1Inch moves to unite DeFi liquidity across 11 chains with Aqua

Decentralized exchange aggregator 1inch has launched Aqua, a new protocol designed to unify liquidity across 11 blockchains, including Ethereum, Arbitrum, and BNB Chain. Unlike traditional methods, Aqua allows liquidity providers to keep assets in their own wallets while authorizing multiple automated market making strategies against a single inventory. This setup increases the advertised availability of capital across protocols but limits simultaneous trades to the actual wallet balance, reverting atomically if exceeded. Pending a governance vote, 1inch plans to incentivize adoption with 500,000 USDC and 10 million 1INCH tokens. The announcement follows recent news of co-founder Anton Bukov's departure from the company in late 2025.

cointelegraphHá 7m

1Inch moves to unite DeFi liquidity across 11 chains with Aqua

cointelegraphHá 7m

Securitize Capital Obtains SEC Registered Investment Advisor Status

Securitize Capital has registered as an investment advisor with the U.S. Securities and Exchange Commission (SEC). This new status allows the company to expand its work with major market participants and offer advisory services under full U.S. regulatory oversight. Previously operating under an exemption from certain reporting requirements, the firm must now comply with the stricter standards of the Investment Advisers Act, including enhanced disclosure, record-keeping, and internal controls. The company already holds an SEC-registered broker-dealer license. This latest registration enables it to combine advisory, trading, and infrastructure services within a single ecosystem. CEO Carlos Domingo stated that this step broadens the firm's ability to support organizations implementing blockchain technology globally, helping clients develop and execute investment strategies for tokenized financial instruments. Securitize is a major player in the real-world asset tokenization sector, with infrastructure supporting tokenized funds from large asset managers representing approximately $5 billion in assets. Despite business growth, the company's publicly traded shares have declined about 46% since their debut on July 2. Securitize expects that achieving registered investment advisor status will bolster trust among institutional clients.

cryptonews.ruHá 10m

Securitize Capital Obtains SEC Registered Investment Advisor Status