Bitcoin Could Face Steep Decline if Stock Market Crashes, Warns Crypto Analyst

A crypto analyst is sounding the alarm on Bitcoin (BTC), stating that the leading cryptocurrency could experience a significant price drop if another major market crashes.

In a recent strategy session, popular crypto trader Justin Bennett informed his 110,800 followers on X, a social media platform, that BTC and the overall crypto market would suffer if the stock market were to crash.

“Crypto bulls better hope that the stock market doesn’t take a turn for the worse because the recent weakness suggests that the crypto market will be hit hard if it does.”

According to Bennett, if the recent drop in Bitcoin’s price was a fakeout or a deviation, it would have already been evident.

“BTC is still below its trend line from October 2023, and now we’re seeing some follow-through. If this were a fakeout or deviation, it should have happened on June 17th. This is not a good sign, especially considering that the S&P, Nasdaq, and other markets have been on the rise for only a few weeks.”

Bennett also points out that the declining dominance of stablecoin Tether (USDT) could have a significant impact on the digital assets market.

The trader’s charts indicate that Tether’s dominance is forming a higher low, which could spell trouble for the crypto markets.

“I’ve been warning about this trend line for Tether dominance for months, and it’s still very relevant. Are we seeing a higher low? This could change, but it’s not looking good for the crypto market right now.”

Bitcoin is currently trading at $65,027, while Tether’s dominance level stands at 4.87.

Disclaimer: The opinions expressed in this article are not investment advice. Investors should conduct their own research before engaging in high-risk investments in Bitcoin, cryptocurrency, or digital assets. Please be aware that your transfers and trades are done at your own risk, and any losses incurred are your responsibility. The Daily Hodl does not endorse the buying or selling of any cryptocurrencies or digital assets, nor is it an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.