Crypto Market’s Rocky April, The Effect on Coins and Market Caps

On April 4, Bitcoin (BTC) reached an approximate price of $46,000 before falling back to $38,000. This surprised crypto traders who had grown accustomed to the market’s irrational returns two years following the March 2020 crash. There were signs of recovery in February and March, following the sharp drops in December and January. However, the question is, “Why has the stock market stopped rising? What are its effects on coins and market caps?” S&P 500 Consistent Relationship with Other Markets The relationship between cryptocurrencies and stocks, particularly Bitcoin and the S&P 500, remains unchanged. Moreover, investors expect it not to change until mid-May. This is when Jerome Powell and the US Federal Reserve are expected to announce a 0.5 percent rate hike to combat inflation. However, this does not imply that the price of Bitcoin will continue to fall. What if cryptocurrency prices continue to move in lockstep with stock prices, rather than the other way around? In this case, many people believe that rate hike fears were likely priced in before the Fed meeting, even though the S&P 500 recently fell. Bitcoin Whales Purge, Tether Whales Surge To forecast how the price of the entire market will move in the future, the crypto data platform Santiment always looks at the whale tiers of Bitcoin and Tether. Whale addresses of Bitcoin hold between 100 to 10,000 BTC while that can of Tether holds between 100,000 and 10,000,000 (U...