24/7 Cryptocurrency News

Bitcoin (BTC) Decouples Further From Stocks, But For The Worse

Bitcoin's (BTC) recent losses saw the token plummet below a key support level, likely setting it up for more declines in the near future.
Published by
Bitcoin (BTC) Decouples Further From Stocks, But For The Worse

Bitcoin’s (BTC) recent losses saw the token plummet below a key support level, likely setting it up for more declines in the near future.

BTC fell below the key $20,000 level on Saturday, hitting its lowest level since late-2020. It is now trading slightly above $19,000, after falling briefly falling below that level.

The token’s losses this week saw it diverge even further from equity markets. While stocks appear to have limited some of their recent losses, a slew of large liquidations and uncertainty over the crypto market pushed BTC even lower.

The token now faces even more losses as more traders get liquidated in the market.

Advertisement

BTC now lagging stock markets

Today’s losses bring BTC down about 72% from its record high hit in November 2021, at nearly $69,000. In comparison, the Nasdaq 100- BTC’s closest stock market parallel- is down 28% from its December 2021 high.

In year-to-date terms, Bitcoin has lost roughly 59%, compared to a 32% loss in the Nasdaq. The difference marks an end to the BTC-Nasdaq correlation seen over the past two years.

The token has fared even worse than non-technology stocks. The Dow Jones Industrial Average is down 18% so far this year.

Broader market weakness has been driven largely by concerns over rising inflation and interest rate hikes by the Federal Reserve. But BTC’s losses have been magnified by trouble in the crypto space.

Advertisement

Why the divergence?

May’s Terra crash, which wiped out about $40 billion of investor funds, has shaken investor faith in crypto. The situation was only worsened as major lender Celsius warned of a liquidity crunch, while hedge fund Three Arrows Capital faces potential insolvency.

Mass liquidations of Celsius and Three Arrows positions also saw BTC being dumped on the open market, further denting prices.

With more liquidations to go, BTC is likely to experience even further downside. There are few factors that could spur a recovery at the moment.

Advertisement

Share
Ambar Warrick

With more than five years of experience covering global financial markets, Ambar intends to leverage this knowledge towards the rapidly expanding world of crypto and DeFi. His interest lies chiefly in finding how geopolitical developments can impact crypto markets, and what that could mean for your bitcoin holdings. When he isn't trawling through the web for the latest breaking news, you can find him playing videogames or watching Seinfeld reruns. You can reach him at ambar@coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Altcoin News

ASTER Token Rockets Over 10% in an Hour as Binance Announces Spot Listing

Crypto exchange Binance on Monday said it will list next-generation decentralized perpetual exchange Aster's crypto…

October 6, 2025
  • Altcoin News

Whale Dumps Massive $55 Million in XRP to Ripple as Coin Falls Below $3?

A whale alert regarding a massive $55 million XRP transfer to a Ripple wallet sparked…

October 6, 2025
  • 24/7 Cryptocurrency News

Aster Token Crashes 10% On DEX Integrity Issues Ahead of Airdrop, What’s Happening?

BNB-based decentralized exchange (DEX) Aster has come into the limelight recently, this time facing integrity…

October 6, 2025
  • Bitcoin News

Spot Bitcoin ETFs Record 2nd Best Weekly Inflows Ever, Bloomberg Analysts Bullish

Spot Bitcoin ETFs saw nearly $3.3 billion in net inflows last week, the 2nd largest…

October 6, 2025
  • 24/7 Cryptocurrency News

Michael Saylor Says “No New Orange Dots” Pausing Bitcoin Buys as Holdings Hit Record $79B

Michael Saylor hinted that Strategy would not be making its routine Bitcoin purchase this week.…

October 5, 2025
  • 24/7 Cryptocurrency News

Experts Turn Bullish on Pudgy Penguins as PENGU Leads Meme Coin Buys on Solana

Crypto experts have begun to make bullish projections for Pudgy Penguins’ native token, PENGU. This…

October 5, 2025