- The stock market and crypto market are interrelated despite being far apart.
- Back in March 2020, the crypto market and the stock market, both crashed.
- Also, the DXY index has increased by 8 percent and is now at 102.992.
It is a tough time for the crypto market. There are various surprises that the investors have been facing while the bearish trend doesn’t seem to end. It all started back in May when the crypto market started to tumble down with the tweets from Elon Musk and China ban rumors. Back in March 2020, when Covid-19 was spreading like wildfire, the crypto and the stock markets crashed, living the market in darkness.
Various organizations had to close their ventures or put a stop to them. This led to the destruction of the stock market and it took the value of Bitcoin down with it. The value of Bitcoin halved. A similar situation can be seen right now as the value of Bitcoin is half of its all-time high. On top of this, if the stock market crashes, it means that Bitcoin will be tumbling down, turning traders into holders.
Bitcoin will be affected by the stock market
A year earlier, in the month of March, we saw a similar situation. The entire market went into a bearish slumber at that now. As of now, the US Dollar Index is a preview of the strength of the greenback when compared to other currencies, the score is at 102.992. We saw an increase of 8 percent. Now the US Central Bank also announced that they will be increasing the benchmark interest rates by the arrival of 2023, preponed from the earlier discussed date.
This has led to the increasing demand for the fiat currency that most people are comfortable with. A straight conclusion comes out that people are selling their Bitcoin and stocks in order to get their fiat. Regardless of this, we can say that Bitcoin is still growing, not by much, but it is still not falling down sharp. This was a sign that was absent in the crash of March 2020.
Hence, it can be concluded that the falling of the stock market might not lead to a fall in the crypto market. There is still a chance that the crypto industry might continue booming gradually. Although, if the crypto market also falls with the stocks, Bitcoin might go under $30K. Prominent investors, like Willy Woo, have made a statement, claiming that the fall of the stock market and the rise of the US dollar would increase and prolong the bearish trend.