Bitcoin dropped 15% in 24 hours today, falling below $40,000 for the first time since March 15.
If you’re looking for plausible answers as to why, it’s worth checking out the equities markets.
In March, BTC’s price correlation with the S&P 500 hit 0.49, with -1 meaning they move exactly opposite and 1 meaning they move in perfect tandem.
Take your pick.
With less money pumping into the economy as the Fed seeks to fight inflation, crypto market caps very well may deflate, according to BitMEX founder Arthur Hayes.
“Bitcoin and Ether will bottom well before the Fed acts and U-turns its policy from tight to loose,” he wrote.
A year earlier, he suggested that BTC could hit $50,000 that year and would bottom out at between $3,000 and $5,000.