⌛ Did you miss ProPicks’ 13% gains in May? Subscribe now & catch June’s top AI-picked stocks early.Unlock Stocks

US Stocks to Affect Bitcoin (BTC) and Crypto Heavily After Today

Published 04/16/2024, 08:56 AM
Updated 04/16/2024, 12:30 PM
© Reuters.  US Stocks to Affect Bitcoin (BTC) and Crypto Heavily After Today

U.Today - The S&P 500 has closed below its 50-day moving average for the first time in five months, marking one of the most bullish events for the U.S. stock market this year; it is a potential warning sign that heavily impacts Bitcoin and the cryptocurrency market in general.

But why do stock market moves even affect Bitcoin ? The reason is quite straightforward: it is all about investor mood. When big stock indexes like the S&P 500 falter, it can make investors across all markets feel nervous. They might start thinking, "If stocks are risky right now, maybe I should be careful with my other investments, like Bitcoin."

Now, looking at Bitcoin's price, we can see it is at a pivotal point. It is wrestling with the $60,000 mark, which is a significant psychological level. If it can stay above this point and climb higher, the next key level to watch would be around $67,000, where Bitcoin has struggled before. If it falls below $60,000, the next support is at the $50,000 area, which might catch a dropping price.

In the past, we have seen Bitcoin do its own thing, sometimes ignoring the stock market entirely. But more recently, as more investors who typically invest in stocks are getting into crypto, Bitcoin's price movements are starting to echo the stock market more closely.

The link between the two markets suggests that today’s stock market drop could lead to cautious trading in the crypto world. If stock markets continue to slide, Bitcoin may feel the pressure, too. Conversely, if the stock market finds its footing and starts to rise again, it could give Bitcoin the boost it needs to challenge its previous highs.

As investors in both camps watch these movements, the coming days could be pivotal. The key takeaway? Movement of assets on the U.S. market still greatly affects Bitcoin and the cryptocurrency market.

This article was originally published on U.Today

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.