These indicators show how the equities sell-off is influencing crypto prices to fall down |

These indicators show how the equities sell-off is influencing crypto prices to fall down |

The sell-off in stocks has been forecasted to have an impact on the crypto markets, which is why experts are looking for other indicators of how it may affect prices.

Register now on Binance, add 50$ and get 100$ bonus voucher!

The “stock market crash 2022 predictions” is a topic that has been discussed in the media over and over again. The indicators show how the equities sell-off is influencing crypto prices to fall down.

These indicators show how the equities sell-off is influencing crypto prices to fall down |

Cryptocurrencies experienced on May 10 a large market crash, losing over 10% in a single day of most of the coins. This is the second time in 2022 that most cryptocurrencies have suffered a price loss of over 10%. Over the last month, BTC has accumulated a 23.57% loss while Ethereum has a 26.32%. Meanwhile, US equities suffered slightly more moderated losses: S&P 500 a -11.07% while Nasdaq 100 a -14.93%:

These indicators show how the equities sell-off is influencing crypto prices to fall down |According to IntoTheBlock Capital Market Insights, price performance is compared to US stocks.

Cryptocurrencies continue to experience harsher sell-offs than financial markets, as seen in the graph above. The real macro background of increasing interest rates causes most investors to be wary of riskier assets, such as cryptocurrencies, which are notorious for their very erratic price performance.

The origins of the May 10 price drop came from US equities markets turning back on their short-lived recovery of last week. As has been seen in the previous months, the 30-day correlation between the cryptocurrencies markets and US equities indexes continues to grow, and this week achieved an all-time high for both BTC and ETH, with around 0.9 points both for S&P 500 or Nasdaq 100:

These indicators show how the equities sell-off is influencing crypto prices to fall down |According to IntoTheBlock Capital Market Insights, the correlation matrix with US stocks is as follows.

A correlation value around 1 indicates a strong positive connection between the two prices, indicating that the price of BTC or ETH and these indices have a statistically significant link and will tend to move in the same direction. Understanding how these connections grow is critical to comprehending how macro markets effect the cryptocurrency market and where to look for crypto price movement leading indications.

Internal analysis of how crypto holders are responding to recent price movements notwithstanding external reasons is useful. Because Bitcoin continues to rule the crypto industry, it’s interesting looking at its on-chain statistics.

Investors are sensitive to respond when their investments flip around and cease making money, as previously observed. BTC has just reached a crucial point, when over half (47.8%) of addresses holding BTC would lose money if they sold at current pricing. This hasn’t happened since the Covid collapse in March 2020:

These indicators show how the equities sell-off is influencing crypto prices to fall down |According to IntoTheBlock Bitcoin Indicators, BTC has been in and out of the money historically.

Register now on Binance, add 50$ and get 100$ bonus voucher!

This indicator indicates the proportion of addresses that would have earned or lost money if they had sold at a certain moment, as well as the variance in holders’ gains over time. Profiting (in the money), breaking even (at the money), and losing money addresses are all categorised (out of the money). 

Although addresses are a decent approximation to single investors, there is always the possibility that a tiny fraction of users are utilizing several addresses. When we look at how long BTC investors have held it, we can see that the great majority of them (26.74M addresses) have held it for over a year. A measure (blue line) that shows no signs of slowing down: 

These indicators show how the equities sell-off is influencing crypto prices to fall down |IntoTheBlock Bitcoin indicators rank BTC addresses by time held.

Despite current market instability and crypto’s poor price performance, this graph shows how the number of long-term BTC holders rises. Short-term investors (labeled as Traders in the figure) have the opposite effect: their numbers grow when major price changes occur, and speculation feeds the whole ecosystem.

After the worst start to the year for US stocks in 83 years, it’s fair to wonder whether the current market scenario presents a compelling purchasing opportunity for long-term investors. The future price swings in crypto will likely be impacted by what happens in the stock market in the United States, albeit the bulk of BTC holders seem unconcerned.

Obtain a Competitive Advantage in the Crypto Market

Join Edge to get access to our own Discord community, as well as more exclusive material and commentary.

On-chain investigation

Snapshots of prices

more information

For $19 per month, join today. Examine all advantages.

The “why crypto market is going down today” is a question that many people are asking. There are several indicators that show how the equities sell-off is influencing cryptocurrency prices to fall down.

  • what happened on the stock market today
  • why is the stock market crashing
  • why market is going down today
  • why is the stock market down this week
  • why is the stock market down this month

Register now on Binance, add 50$ and get 100$ bonus voucher!

More Stories
Top 7 Cryptos that can Turn a $100K Investment into $1M Gains