24/7 Cryptocurrency News

Bitcoin (BTC) Price Dips Significantly As Crypto Market Losses $400 Million; Here’s Why

Published by
Bitcoin (BTC) Price Dips Significantly As Crypto Market Losses $400 Million; Here’s Why

Bitcoin, the largest cryptocurrency by market cap, has continued to correlate with other high-risk assets. The big bull took a sharp nose dive on the 5th of May, and up until press time, Bitcoin (BTC) is still trading downwards.

Advertisement

Over $400 Million Liquidations in Last 24 hrs

At the time of this writing, Bitcoin trades at $36,421, as its 24 hour-loss jumps above 8%. This has brought the 7-days consecutive drop to 7.85%. Similarly, Ethereum (ETH) has imitated Bitcoin’s downward move, and has dipped significantly from its previous levels. With over 6% losses from the past 24-hours, Ether, which was very close to tapping $3,000 the day before, is now sitting at $2,738.

Overall, the market has sustained over $406 million in liquidations, over the last 24-hours, according to data from Coinglass. But the genesis of this drop, which began with Bitcoin dropping 5% on the 5th of May, after nearly clenching $40,000, seems to be tied to the stock market.

Advertisement

S&P 500 – Bitcoin Correlation 

 It appears that Bitcoin didn’t dip, until the stock market selloff kicked in on Thursday. Nasdaq saw a 5% decline and the cryptocurrency market immediately followed suit. In the same manner, Bitcoin and other cryptocurrencies surged on Wednesday and also recorded a bullish spike, but this was not independent of the stock market. The S&P 500 recorded a notable performance for the first time in two years, when it rose 3% on that day, and the cryptocurrency market benefitted from this rise.

The correlation that the cryptocurrency market has with the stock market had been noticed by market players in the past. However, this year, particularly within the last two months, the market has recorded a major upsurge in Bitcoin’s correlation with the stock market. On the 22nd of April, Bitcoin dipped 5% for the same reasons.

Prior to this, data from Arcane Research revealed that Bitcoin’s correlation to the S&P 500 hit the highest level, for the first time since October 2020, when it hit 0.49. 

Advertisement

Share
Sunil Sharma

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on X at @sharmasunil8114 and reach out to him at sunil (at) 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

  • 24/7 Cryptocurrency News

Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”

The Ethereum price and BMNR stock have recorded modest gains thanks to BitMine’s recent $1…

October 2, 2025
  • 24/7 Cryptocurrency News

ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?

In a fresh development, multiple ASTER tokens have been sent to Binance spot wallets, following…

October 2, 2025
  • 24/7 Cryptocurrency News

Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle

Avalanche Treasury Co., in partnership with Mountain Lake Acquisition Corp., has unveiled a $675 million…

October 2, 2025
  • 24/7 Cryptocurrency News

Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings

Nasdaq-listed VivoPower has stepped up its digital treasury goals with a fresh capital raise aimed…

October 2, 2025
  • 24/7 Cryptocurrency News

Solana Price Rallies 5% as Nasdaq-listed VisionSys Launches $2B SOL Treasury Strategy

Solana increased in price by 5% to approximately $219 following a $2 billion Solana treasury…

October 2, 2025
  • 24/7 Cryptocurrency News

XRP Ledger Rolls Out MPT Standard for Real-World Asset Tokenization

The XRP Ledger (XRPL) has launched the Multi-Purpose Token (MPT) standard, designed to simplify and…

October 1, 2025