• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news
Crypto.com Logo
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play GamesTry
  • Bet & WinTry
No Result
View All Result
NewsBTC
No Result
View All Result
Nexo Logo

More Pain for Bitcoin as Citigroup Warns S&P 500 May Fall by 10%

Yashu Gola by Yashu Gola
2 years ago
in Bitcoin, Technical analysis
Reading Time: 3 mins read
Advertisement
  • Bitcoin expects to go through a shaky third-quarter on growing worries about a stock market correction.
  • Citigroup sees the S&P 500 rally to drop by at least 10 percent from its current levels, with a worst-case scenario predicting a 20 percent or more decline for the US benchmark index.
  • The monthly correlation between Bitcoin and the S&P 500 is at a record high.

As Bitcoin blindly tails the moves in the US stock market, the chances are that it will fall into a bearish pit.

The worrisome analogy appears valid if one looks at the monthly correlation between Bitcoin and the S&P 500. According to data gathered by Skew, it currently stands at 77.1 percent, reflecting a higher likelihood of Bitcoin imitating the moves of the US benchmark index.

bitcoin, cryptocurrency, btcusd, btcusdt, xbtusdt, crypto, s&p 500, spx

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!
Bitcoin-S&P 500 Realized Monthly Correlation hits an all-time high. Source: Skew

Unfortunately, the S&P 500 is at risk of pausing its rally.

The index has surged by more than 25 percent from its March 23, helped by Federal Reserve’s unprecedented monetary policy to aid the economy through the COVID-induced lockdown.

Nevertheless, its growth has completely sidelined weak economic fundamentals arising from a record number of bankruptcies, expectations of weaker corporate earnings, and resurgence in COVID cases.

BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner?
Get 110 USDT Futures Bonus for FREE!

Strategists expect the S&P 500 to have its moment of reckoning – a much-awaited bearish correction – as the third-quarter matures.

A 10% Drop Underway

Investment banking giant Citigroup said in an investor note Tuesday that it expects the S&P 500 to fall at least by 10 percent from its current levels. That would land the US index near 2,900.

Citi strategist Tobias Levkovich said the S&P 500, at best, could trade in the 2,700-3,200 area, given that the Fed will continue providing monetary support to the economy. If not, the S&P 500 is at risk of declining by as much as 20 percent – in the 2,500-3,000 vicinity.

bitcoin, btc usd, bitcoin price, bitcoin volatility, xbtusd. btcusdt

S&P 500 is consolidating above 3,000 for more than a month. Source: TradingView.com

“The second wave of debilitating COVID-19 cases that causes either new shutdowns or slower economic recovery would be challenging, not to mention the U.S. elections,” said Mr. Levkovich, adding that “these are not immediate threats,” nevertheless.

Bitcoin

As Bitcoin follows the S&P 500 with a 77.1 percent accuracy, anything bearish for the US index would mean the same for the cryptocurrency. Furthermore, it may also likely remain under downside risks owing to its short-term technical indicators.

bitcoin, btc usd, bitcoin price, bitcoin volatility, xbtusd. btcusdt, s&p 500, spx

Market analyst Teddy Cleps highlighted two of them in his chart published Wednesday. He noted that bitcoin stands trapped under a descending trendline resistance. Meanwhile, its MACD indicator is also forming a Bear Cross, which signals a sell-off ahead.

“Don’t let the euphoria blind you, manage your risk by raising your stop losses,” added Mr. Cleps.

Bitcoin was trading at $9,296 at the time of this writing, up 0.47 percent from its midnight Wednesday open.

Photo by Jorge Franganillo on Unsplash

Tags: bitcoinbitcoin priceBitcoin volatilitybtc usdS&P 500spxxbtusd. btcusdt
Tweet123Share196ShareSend
Win up to $1,000,000 in One Spin at CryptoSlots
Yashu Gola

Yashu Gola

Yashu Gola is a Mumbai-based finance journalist. He is profoundly active in the bitcoin space since 2014 – and has contributed to several cryptocurrency media outlets, including NewsBTC, FxDailyReport, Bitcoinist, and CCN. Academically, Yashu holds a bachelor's in information technology, with majors in data structures and C++ programming language. He has also won the 'Atulya Award' for his efforts towards raising $100,000 for an India-based farming project.

Related Posts

bitcoin

Why Bitcoin Could Return To $28,000, But By The End Of 2022

8 hours ago
$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

$15k Possible Bottom For Bitcoin? “Delta Cap” Says So

11 hours ago
bitcoin bear

New Bitcoin Record Paints Incredibly Bearish Picture As BTC Struggles At $19,000

13 hours ago
Bitcoin

Why Bitcoin Could Collapse Another 50%, Says Michael “Big Short” Burry

13 hours ago
Crypto Market Loses $60 Billion As Bitcoin Dips Below $20,000

Crypto Market Loses $60 Billion As Bitcoin Dips Below $20,000

14 hours ago
Bitcoin

Bitcoin Sees Worst Quarter In 11 Years

15 hours ago

Premium Partners

Top Brokers

PrimeXBT

PrimeXBT

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
7BitCasino

7BitCasino

Review · Visit
BC.Game

BC.Game

Review · Visit
Punt Casino

Punt Casino

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bspin

Bspin

Review · Visit

Sportsbooks

1xBit

1xBit

Review · Visit
BC.Game

BC.Game

Review · Visit

Crypto To Add The Best Gains To Your Portfolio For Bull Market: Gnox (GNOX), Cronos (CRO) And NEAR Protocol (NEAR)

July 1, 2022

U Promise Me: The Digital Promise Platform

July 1, 2022

XT.com Lists Land of Fantasy (LOF) With USDT Trading Pair

July 1, 2022

LYOTRADE Launches Crypto Loans—Get USDT and Win Against Volatility

July 1, 2022

Torches Genesis NFT Launching, Win Torchlight NFT to Unlock IDO Allocation

June 30, 2022

ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Crypto Prices from Nomics

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2021 NewsBTC. All Rights Reserved.

  • Home
  • News
    • Bitcoin
    • Ethereum
    • Cardano
    • Dogecoin
    • Ripple
    • DeFi
    • NFT
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Play Games
  • Bet & Win

© 2021 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.