The S&P 500 is expressed as "the index that covers the 500 largest American companies and carries 75% of the American stock market". It is possible to say that it has an important place especially on an international scale. The critical index, as an index that carries the shares of 500 large companies in the United States, gives a concrete idea of both the functioning of the general economy and other markets.
The index is down 20 percent from its peak. According to economists, this development can be described as a bear market. Considering the high correlation of the Nasdaq 100 and S&P 500 with Bitcoin, this is a negative development for BTC's price action.
The leading cryptocurrency Bitcoin dropped below $28,700 over the weekend. Trying to recover again, BTC is struggling to pass the psychological resistance level of $ 30,000. The decline in US stock indices is also felt in the cryptocurrency market.
The S&P 500 traded 20% below last year's high, causing concern. Popular Twitter user Blockchain Backers evaluated the state of the economy, using the phrase "another weird day in the stock market". The Dow Jones also fell. The expert pointed to the correlation between the stock market and BTC, noting the stagnant price movement of Bitcoin.
Another analyst, PlanC, argued that this situation in the stock market could bring Bitcoin down significantly from current levels and drew attention to the possibility of “Black Swan”. According to some sources, ”Black Swan, in his words; We mean events that seem unlikely to happen, but which, when they do occur, have a huge impact, and for which we concoct an explanation that, once it happens, makes it less random.” The analyst made the following statement:
"If the cryptocurrency market were in a bubble, I would say Bitcoin's bottom is $25,000 to $27,500, but it's a reasonable possibility that macro factors will pull BTC to $22,000 to $24,000. possible to crash."
Dan Rinkecivus, one of the Forbes analysts, also emphasized that the cryptocurrency market is largely dependent on the price movement of stocks and that new moves in the Fed's fight against inflation will determine the fate of the Bitcoin price. Coindeks reported that Bitcoin's correlation with the Nasdaq has reached a record high. Speaking to Forbes, Howard Greenberg from Prosper Trading Academy made the following statement:
"It is easier for institutions to liquidate cryptocurrency positions than some other positions, especially with 24/7 access to their capital, so they tend to be the first positions to be closed."