Equity weakness could damp demand for bitcoin after biggest ETF inflows in a month
Bitcoin and ether prices have declined amid broader equity market weakness and rising oil prices. While analysts warn that further stock market deleveraging could threaten support levels, recent record inflows into spot bitcoin ETFs suggest continued institutional interest.
Why it matters
The correlation between traditional equity markets and cryptocurrency highlights the increasing integration of digital assets into the global financial system and their sensitivity to macroeconomic shifts.
Bitcoin BTC $81,392.72 dropped about 1.1% over the last 24 hours, ether ETH $2,382.91 fell 1.7% and the broader CoinDesk 20 ( CD20 ) Index lost roughly 1.6%, pulled lower by declines in Asian stocks and the rising price of oil.
Further weakness in equities could damp demand, analysts at QCP Capital wrote in a note published Monday. That may be on the cards. Both Nasdaq 100 futures and S&P 500 futures are lower, with companies including Coinbase Global COIN and Galaxy Digital GLXY falling in pre-market trading.
“Broader equity deleveraging dynamics could transmit to cryptocurrency markets and potentially threaten the $80,000 support level if sustained,” the analsysts wrote.
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