Here’s Why The Bitcoin Price Saw Sharp Crash Below $67,000
The Bitcoin price briefly crashed below $67,000 on October 21, although it quickly reclaimed this level as support before the daily close. This price decline is
The Bitcoin price briefly crashed below $67,000 on October 21, although it quickly reclaimed this level as support before the daily close. This price decline is believed to be due to its correlation with the stock market, which also experienced a drop of its own.
Why The Bitcoin Price Dropped Below $67,000
The Bitcoin price dropped below $67,000 primarily thanks to its correlation to the US stock market. IntoTheBlock data shows that the correlation between the flagship crypto and the S&P 500 is currently at 0.63, which indicates a strong positive price correlation. The S&P 500 and Dow index dropped from their record highs on October 21 ahead of earnings reports.
The stock market drop and the Bitcoin price crash are believed to be driven by uncertainty in the macro environment. This market uncertainty stems from the rising inflation expectations and concerns about how government spending is contributing to this development. As such, market participants are currently cautious about their…
