Bitcoin Could Experience Significant Price Decline if Stock Market Crashes, Warns Crypto Analyst
In a recent strategy session, renowned crypto trader Justin Bennett cautioned his extensive following of 110,800 users on the social media platform X that Bitcoin (BTC) and the overall crypto market could suffer a severe blow if the stock market experiences a crash.
Bennett emphasized that the recent relative weakness in the crypto market suggests that it could be heavily impacted in the event of a stock market crash. He urged crypto bulls to hope for the best, as a downturn in the stock market would likely have a negative ripple effect on cryptocurrencies.
According to Bennett, if Bitcoin’s recent drop in price was merely a fakeout or a temporary deviation, it would have already been evident. He pointed out that BTC is still trading below its Oct. 2023 trend line and that there is now visible follow-through in the decline. The fact that the S&P, Nasdaq, and other stock market indices have been consistently rising over the past few weeks only adds to the concern.
Bennett also drew attention to the declining market dominance of stablecoin Tether (USDT), noting that this could have a significant impact on the digital assets market. His charts indicate that Tether’s dominance is forming a higher low, which is not a positive sign for the crypto market.
The trader has been warning about this trend line for months and believes it is still highly relevant. He expressed concern over the potential development of a higher low for Tether’s dominance, as this could further disrupt the crypto market.
As of now, Bitcoin is trading at $65,027, while Tether’s dominance level stands at 4.87.
It is important to note that the opinions expressed by The Daily Hodl, including those of Justin Bennett, are not intended as investment advice. Investors are urged to conduct their own thorough research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Transfers and trades are conducted at the individual’s own risk, and any losses incurred are their responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor does it act as an investment advisor.
