Here’s How Much Bitcoin (BTC) Can Correct In Case of Choppy Week Ahead

By Bhushan Akolkar
Published September 20, 2021 Updated September 20, 2021
Best Buy In

DeFi Platform

Exchanges

Wallet

bitcoin

Here’s How Much Bitcoin (BTC) Can Correct In Case of Choppy Week Ahead

By Bhushan Akolkar
Published September 20, 2021 Updated September 20, 2021

As the overall crypto space enters a deeper correction, nearly $250 billion have been eroded from the overall crypto space. Bitcoin (BTC) alone has contributed to over $90 billion in investor wealth erosion.

As of press time, Bitcoin (BTC) is trading 7.5% down at a price of $43,841 and a market cap of $819 billion. Some analysts have been saying that the contagion from China Evergrande Group led to a correction in the global market following a correction in the crypto market.

Following the meeting of the Federal Reserve this week, the global market is likely to remain choppy. Thus, we can estimate a fair bit of volatility and further correction in the crypto space. Speaking to Bloomberg, Jonas Luethy, a sales trader at GlobalBlock, the U.K.-based digital asset broker, said:

“Some have attributed the sudden dip to the currently ongoing Evergrande situation in China which has already caused turmoil in traditional markets. Analysts have suggested a choppy week is ahead, with a potential pullback to as low as US$41,000.”

Bitcoin’s Correlation With Traditional Stock Indices

The BTC performance has been often correlated with the traditional stock indices like the S&P 500 and the Nasdaq 100 as the world’s largest cryptocurrency continues to get more integrated with the global financial markets. As shown in the below charts, Bitcoin’s correlation with the tech-heavy Nasdaq has been consistently positive since theMarch 2020 crash.

Courtesy: Bloomberg

However, going ahead, investors must be prepared for volatility. Scott Bauer, chief executive officer at Prosper Trading Academy, believes that the news coming out of China can be negative for the crypto space. He further added:

“On a day like today, where you have the perfect storm, I think people just go to, ‘What can I sell quickest? What do I have access to at 2 in the morning? If they’re holding crypto, which is obviously an around-the-clock market, maybe that’s the first place they look”.

On the other hand, El Salvador jumped in to buy the Bitcoin dip. The country added another 150 Bitcoin to its treasury and now holds 700 BTC in total.

advertisement

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
770 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

Loading Next Story