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<p>The post <a rel="noopener noreferrer nofollow" href="https://coinpedia.org/news/crypto-market-showdown-us-stocks-dwindle-will-bitcoin-follow-suit/">Crypto Market Showdown: US Stocks Dwindle, Will Bitcoin Follow Suit?&nbsp;</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://coinpedia.org">Coinpedia Fintech News</a></p>
<p>The recent <a href="https://beincrypto.com/stocks-vs-bitcoin-falls-will-btc-follow/" rel="noopener noreferrer nofollow">report</a> of a decline in the US stock market has caused considerable unease among investors. Several prominent stocks have experienced significant drops, with some witnessing nearly a 20% decrease in value. Coinbase Global, Inc. (COIN) stands out as its stock price has fallen by more than 5%.</p>
<p>As the market closed, the SPX500 faced a notable downturn, with its price decreasing by nearly 1% to reach $4,151 early the next morning. Bitcoin is riding high with bullish sentiments, whereas the grim reality differs. There are more potholes, and fake news can give a temporary pump. Will this surge last long? Here’s the breakdown of the current market status.&nbsp;</p>
<h2 class="wp-block-heading" id="strong-spx-downfall-calls-for-something-special-strong"><strong>SPX Downfall Calls for Something Special?&nbsp;</strong></h2>
<p>The recent decline in the SPX has led to what traders call an “exhaustion gap.” Such a gap typically forms after a price pattern and often represents a final attempt to establish new lows. In this case, the gap could be considered a potential exhaustion gap, as the market opening at $4,167 is lower than the previous day’s close at $4,186. Past instances of exhaustion gaps have demonstrated mixed outcomes for Bitcoin’s price.</p>
<p>A significant factor to consider is the correlation between the SPX and Bitcoin, which currently stands at -0.65. A negative correlation implies that when the SPX rises, Bitcoin is likely to fall and vice versa. While this might suggest a potential increase in Bitcoin’s price due to the SPX’s recent decline, it’s important to note that this doesn’t always hold, as evidenced by the August 2 gap when Bitcoin saw a sharp decline despite a similar correlation.</p>
<h2 class="wp-block-heading" id="strong-but-crypto-downturn-has-its-own-story-strong"><strong>But Crypto Downturn Has Its Own Story</strong></h2>
<p>Interestingly, the downward trend isn’t limited to traditional stocks; it has also affected cryptocurrency-related stocks like Coinbase. As of the most recent data, Coinbase is trading at $73.41, more than 5% below the previous day’s close. This drop places Coinbase’s price in the middle of its trading range, fluctuating between $66 and $80 since the beginning of August.</p>
<h2 class="wp-block-heading" id="h-what-s-driving-the-current-dynamics"><strong>What’s Driving the Current Dynamics?&nbsp;</strong></h2>
<p>The recent Bitcoin surge signals a seismic shift in investor sentiment. As high-net-worth individuals and institutional investors pivot towards Bitcoin, the landscape of traditional and digital assets might undergo a significant rebalancing. Historically, robust Bitcoin performances have heralded extended bull runs, potentially heralding the onset of a broader crypto market upswing. However, it’s crucial to note that this surge has somewhat overshadowed altcoins, potentially curtailing their independent rallies due to Bitcoin’s dominant presence of over 52%.</p>

Crypto Market Showdown: US Stocks Dwindle, Will Bitcoin Follow Suit?

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