Fears of a recession are growing as the S& P 500 falls 20%, putting the stock in a bear market and boosting the chances of new lows for BTC and altcoins.
“Sell in May and go away”
Bitcoin (BTC) is trading below $29,000, according to data from Cointelegraph Markets Pro and TradingView, and traders are concerned that a loss of this level would result in a fall to the low $20,000s in the coming week.
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, demonstrates traders’ tempered expectations.
On May 20, all asset classes saw a selloff, leaving traders with little choice for escaping the chaos as inflation fears and increasing interest rates continue to dominate the news.
The person who invented the term “sell in May and go away” had remarkable insight, and the performance of crypto and stock markets over the last three weeks has proven that it is still accurate.
S&P recession fears
The S&P 500 dropped another 1.62 percent on May 20, marking a more than 20% drop from its all-time high in January 2022 and sparking recession fears.
If the benchmark index closes the day down 20% from its all-time high, the benchmark index is firmly in the bear market territory.
The Nasdaq Composite and Dow have both suffered big losses as a result of the general weakness, with the Nasdaq down 275 points, or 2.42 percent, and the Dow down 362 points, or 1.28 percent.
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Bitcoin is in worse condition
What’s terrible for Bitcoin is even worse for other cryptocurrencies.
According to reports, some analysts believe BTC might fall to $22,700 following a death cross, based on its previous price performance.
Altcoins also fell sharply as BTC, Ether, and stocks fell, reversing earlier gains.
Ellipsis (EPS), Persistence (XPRT), and 0x (ZRX) were among the few bright spots, with gains of 30 percent, 13.92 percent, and 12.34 percent, respectively.
The total cryptocurrency market capitalization is currently $1.234 trillion, with Bitcoin commanding 44.6 percent of the market.
About S&P 500 Index?
500 Standard and Poor’s
S&P 500 is an abbreviation for Standard and Poor’s 500, a stock market index that measures 500 publicly traded domestic companies in the United States.
Issuers of securities and debt obligations pay Standard & Poor’s fees for its rating services. Companies and individuals frequently pay for more extensive market intelligence and analysis reports, as well as subscriptions to other research services.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/05/23/sp-500-falls-by-20-bitcoin-and-altcoins-to-hit-low/