The Bitcoin and Crypto markets suffered severe declines at the beginning of the week, with the main Cryptocurrency to a low $ 76,500. Interestingly enough, the market for digital assets was not alone in misery, since the US stock market also lost a significant part of its value to start the week.
Several experts have weighed in on this widespread market decline that is triggered by the economic uncertainty, as US President Donald Trump Continue to launch trading tariffs at any time. Prominent Crypto Pundit Burak Kesmeci is one of the latest who comments on this scenario and predicts which market will recover first.
BTC and ETH exhibit high correlation with the US stock market
In a March 15 post on the X platform, Kesmeci declared Why it is almost impossible for bitcoin and other cryptocorate to recover before the American traditional markets. The reasoning behind the expert’s claim is based on the high correlation between Cryptocurrency and the US stock market.
To prove this direct relationship revealed Kesmeci Bitcoin and Ethereum’s correlation with S&P 500 Index (Considered as the best meter for the US stock market) is 0.85 and 0.95 respectively. As emphasized in the diagram below, the two largest cryptocations also show a high correlation with other US stock market index, including Dow Jones Industrial (DJI) average and Russell 2000.
Source: @burak_kesmeci/X
According to Kesmecia, this trend proposes that investors see digital assets, especially Bitcoin and Ethereum, in similar lights as shares in the United States. This explains why the crypto market is experiencing profound sales pressure anytime Trump announces New commercial duties.
In contrast, an opposite trend can be seen with gold, which has reached a new height in recent days. Kesmeci noted that VIX (FEAR) index is strongly negatively correlated with Bitcoin, which explains why the flagship Cryptocurrency falls when the former rises.
Finally, the analyst revealed that the DJI and S&P 500 indexes are below 200-day simple variable average (used for long-term trend tracking) for the first time since October 2023. According to Kesmeci, these USA stock market index Would have to move over the SMA200 again before the crypto market would recover.
Bitcoin price
From this writing, the price of bitcoin amounts to about $ 84,050, which reflects an increase of 0.3% over the past 24 hours. According to data from Coytecko, the market leader is down by more than 2% over the past week.
The price of BTC hovering around $84,000 on the daily timeframe | Source: BTCUSDT chart on TradingView
Image from iStock, chart from tradingview
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