The S&P 500, a stock market index tracking the performance of 500 large companies listed on stock exchanges in the United States, fell to just 3811 yesterday, marking a more than 10% drop in May and 20% from all-time high (ATH). The drop leads to less optimism for Bitcoin and altcoins.
On May 20, we saw a massive sell-off across all asset classes, leaving investors with few options to escape the carnage as inflation and interest rate fears continue to rise.
Data from CoinCu shows that Bitcoin (BTC) price is trading at around $29,000, and investors are worried that a loss of this level could lead it to drop to $20,000 in the coming week.
Based on its previous price behavior following a death cross, some analysts predict that BTC might fall to $22,700.
The put/call ratio for BTC open interest, which hit a 12-month high of 0.72 on May 18 according to cryptocurrency research firm Delphi Digital, is further evidence of traders’ subdued expectations.
“A high put/call ratio indicates that investors are speculating whether Bitcoin will continue to sell off, or it could mean investors are hedging their portfolios against a downward move.” – Delphi Digital.
The S&P 500 lost 1.62% on May 20, marking a more than 20% drop from its all-time high in January 2022 and fueling recession fears. The index is currently closing at 3900, which is the same as it opened on May 19; a bear market is still lurking if next week this level continues to fall.
Nasdaq Composite and Dow are also facing negative signals when the intraday trading level is not significant.
Altcoins also suffered a sharp sell-off as BTC, Ethereum (ETH), and stocks fell, in contrast to the gains seen yesterday (May 19).
The overall crypto market capitalization is currently $1.248 trillion, and Bitcoin dominance is at 44%.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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