Crypto Market Correction Intensifies As S&P 500, Dollar Index Enter Dangerous Territory
Highlights
- Major altcoins like ETH, XRP, SOL, and DOGE dropping around 5% over the past week as Dollar Index bounces.
- Crypto market fumbles as Bitcoin’s correlation with the S&P 500 weakens even as the index hits record highs.
- The S&P 500 touches a historical resistance trendline just seen before 1929 Great Depression and 2008 financial crisis.
The broader crypto market has entered a strong correction, with Bitcoin and altcoins continuing to face strong selling pressure. Although the S&P 500 continues with its upside, experts believe that it is entering a dangerous territory, last seen before the 1929 Great Depression, and the 2008 financial crisis. Furthermore, the rising US Dollar index could pressure risk-on assets like crypto and equities.
Crypto Market Corrects Despite Fed Rate Cuts
Earlier this week, Fed Chair Jerome Powell announced a 25-bps interest rate cut in a major pivot of the US monetary policy. The crypto market hasn’t seen much action since then, and has rather turned into a sell-the-news event. Bitcoin (BTC) has failed to give a daily close above $117,200 for sustained upside, but continues to trade under $116,000.
Onthe other hand, top altcoins like Ethereum (ETH), XRP, Solana (SOL), Dogecoin (DOGE) are all down by 5% over the past week. As per the Coinglass data, the 24-hour liquidations have soared to $283 million, of which, $242 million is in long liquidation.
Furthermore, Bitcoin (BTC) and the broader crypto market is losing its correlation with the S&P 500, which hit a new all-time high above 6,600 on Friday, September 19. Crypto analyst Ted Pillows warned that September’s triple witching expiration could trigger short-term market weakness. As a result, he predicts a 15-20% altcoin market correction, that could affect top altcoins like ETF, XRP, SOL, DOGE, etc.
S&P 500, Dollar Index Enter Dangerous Territory
While the S&P 500 continue to inch higher following the Fed rate cuts, crypto analyst Ted Pillows has raised concerns that it is now entering a dangerous territory. Commenting on S&P 500’s current trajectory, Pillows stated that the index has touched its upper trendline resistance for only the third time in history.
According to Pilows, the previous two instances coincided with the onset of the 1929 Great Depression and the 2008 global financial crisis.
Market strategist Ted Pillows noted that the U.S. Dollar Index (DXY) is rebounding from a key support level. Historically, a strengthening dollar has signaled bearish pressure on risk-on assets, including cryptocurrencies.
Nonetheless, Pillows believes that investors need to see this short-term pain moving ahead, before we begin a parabolic rally moving into Q4. Crypto market analysts are already expecting a BTC price rally to $150K by the year-end, and the start of a major altcoin season ahead.
- BitGo To Follow Gemini’s Footsteps With US IPO After 4x Revenue Surge
- Michael Saylor Predicts Bitcoin Will Outperform S&P 500 Forever
- Crypto Market Eyes Upside as FTX Set to Repay $1.6B to Customers
- Elon Musk’s X Vows Crackdown on Bribery Network Behind Crypto Scam Accounts
- Flare Unveils First XRP-Backed Stablecoin, Boosting XRP’s Utility
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal 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.
