Related: Here’s why Bitcoin price can’t go higher than $87.5KThe Kobeissi Letter described the latest sell-off as “flash crashes,” which are being witnessed across all risk asset classes. The commentator explained that it comes down to “sentiment and emotion,” adding that investor confidence has plummeted as recession fears skyrocket.“Investors are worried about taking on more risk in this market.”Source: The Kobeissi LetterThe Kobeissi Letter has previously pointed to the growing correlation between cryptocurrencies and other risk assets, adding that “Bitcoin has traded almost perfectly in line with the Nasdaq 100 since 2023.”Bear flag hints at more downsideFrom a technical perspective, TOTAL — the combined market capitalization of all cryptocurrencies — remains in line with a bearish continuation pattern that suggests more downside is in play.
Source: CoinGlassA predominance of long liquidations suggests that the crypto market was overleveraged on the bullish side. Risk-off sentiment pushes the crypto market downThe ongoing correction in the crypto market mirrors a similar weakness in US equities. Key points:The S&P 500 dropped by 0.22% to close the day at 5,662.89 on March 20, while the Nasdaq composite index declined by 59 points (-0.33%). The Dow Jones index lost 0.02% to close the trading day on March 20 at 41,953.32.24-hour performance of US equities Source: Financial Visualizations“This morning, S&P 500 futures erased more than $600 billion of its market cap without any major headlines,” said capital markets commentator The Kobeissi Letter in a March 20 post on X.
Bitcoin leads the market slumpThe crypto market retreated on March 21 as traders booked profits following Bitcoin’s retracement from $87,000 after Trump’s speech at the Digital Asset Summit in New York failed to meet expectations.
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Author / Journalist: Cointelegraph by Nancy Lubale
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