There was a time when Bitcoin had nothing to do with the stock exchange markets. However, in 2021, many companies launched exchange-traded funds (ETFs) for several cryptocurrencies. Among all the ETFs, it was Bitcoin that had the highest number of ETFs launched.
This meant that Bitcoin had gained mainstream adoption and was being traded through the regulated stock exchange markets. As a result, major investors from the mainstream sector started to invest in Bitcoin.
Now, even when the stock market is in a dire situation, it has caused a huge slump for Bitcoin. Due to the ETFs and money of thousands of mainstream investors on the line, Bitcoin’s price has started feeling the downtrend.
In the past few weeks, the S&P 500 Stock Exchange, which homes all major tech companies, has started experiencing a downtrend. The rise in the inflation rates and other market pressures have caused the S&P 500 Stock Exchange to experience the worst time ever.
Bitcoin Faces the Impact
It was on May 21, when Bitcoin tried to make its recovery and come over the $30k mark. However, at that time, the Wall Street trading market was indicating a negative trend for Bitcoin.
There was nothing that the Wall Street trading market could do or offer to favor the upward rise of Bitcoin. As Bitcoin moved into the weekend, its price had come close to the $28,700 trading price.
After that, the price of Bitcoin had recovered by $500 but the downtrend was still there. A day prior to the weekend, Bitcoin’s trading price was worth $30,700. Given the current circumstances, it was a high price Bitcoin had hit but by the weekend, its price had dropped by 4.7%.
Similar to the fluctuation of Bitcoin was the fluctuation recorded for the US Stock Indexes. They have remained highly volatile throughout the week and the situation wasn’t good as the week came to a close.
Current Situation of S&P 500
By now, it has become clear that the S&P 500 also has an impact on the overall situation of Bitcoin. Just like Bitcoin, it is also experiencing a bearish trend. Compared to the same period last year, S&P 500 has recorded a 20% loss in its points.
Predictions about Bitcoin
According to the analysts, at present, the whole cryptocurrency market is in a bad shape. It is expected that the cryptocurrency market may end up in a bubble. In that case, Bitcoin price may fall into a range between $25,000 and $27,500.
However, if the major factors impacting the price of Bitcoin do not go away, then Bitcoin may dip between $15,000 and $20,000.
