With a bear market dominating the market, the community is getting concerned about a crypto crash. Bitcoin was trading at $39,986 at press time, down roughly 2.15 percent from the previous day. In the previous 24 hours, Ethereum has lost 0.14 percent of its value. Specifically, the prior week saw the market lose roughly $300 billion.
Bloomberg experts discovered the strongest link between the Bitcoin price and the Nasdaq in history during the downturn. The expert commented on the 40-day record correlation.
“Increase further erodes the argument that Bitcoin works well as a diversifier, one that’s been held up by proponents as key to its appeal.”
The graphic above has sparked rising worry about a new trend that has appeared in recent months. After the Fed raised interest rates, the pattern was accompanied with a sell-off pressure in crypto assets.
Another interesting finding is that since 2020, Bitcoin and Nasdaq have showed strong indicators of association. Anthony Pompliano, a cryptocurrency analyst, believes this is due to a shift in the Bitcoin investor base.
According to him, Bitcoin is presently on hold by essentially two large entities. First, there’s the realm of ‘Wall Street institutions.’ This group considers Bitcoin to be their most dangerous asset. Second, there are “ordinary citizens” who hold Bitcoin as a reserve asset.
Arthur Hayes, the co-founder of BitMEX, has a similar take on the developing link between Bitcoin and Nasdaq.
According to Pompliano, there are two types of Bitcoin investors: those who see Bitcoin as a risk asset and those who regard it as a reserve asset. This distinction is critical for comprehending the data set that follows.
Crypto Whale, an anonymous Twitter account with 450k followers, posted about recent dramatic liquidations in the crypto sector.
Over $460 million in crypto was liquidated in the last 24 hours, according to Crypto Whale, with over 90% of it in long positions. This data indicates that the market is weak and on the verge of collapsing.
Related Posts – If this pattern holds, Bitcoin might fall to $26,000
