20% drop in the S&P 500 puts stocks in a bear market, Bitcoin and altcoins follow

The phrase “sell in May, go away” was a brilliant idea. It is evident that crypto and stock market performance over the past three week has demonstrated that it still holds true.

Pan selling across all asset classes has occurred on May 20, leaving traders with little choice but to avoid the chaos as rising interest rates and inflation worries continue to dominate the news.

TradingView and Cointelegraph Markets Pro data show that Bitcoin’s price has fallen below $29,000 and that traders are concerned that it will fall to $20,000 in the next week.

BTC/USDT 1-day chart. Source: TradingView

Cointelegraph reports that some analysts believe BTC may drop to $22,700, based on historical performance after a death cross.

The put/call ratio of BTC open interest to BTC has reached a 12-month high at 0.72, according to Delphi Digital, a cryptocurrency research firm.

Bitcoin put/call ratio based on open interest and volume Source: Delphi Digital

Delphi Digital said,

A high put/call ratio could indicate that investors speculate about whether Bitcoin will continue its sell-off, or that they are protecting their portfolios from a downturn.

Stocks enter bear market territory

The traditional markets were further hurt by the S&P 500’s additional drop of 1.62% on May 20, marking a more drastic 20% fall from January 2022’s all-time high. This was further fueling recession fears. The benchmark index would be officially in bear market territory if it closes the day with a 20% drop from its all-time high.

Performance of major indices as of May 20, Source: Yahoo Finance

The Dow and Nasdaq Composite have also suffered significant losses due to widespread weakness. The Dow fell 362 points, representing a decline of 1.28%, while the Nasdaq lost 275 points or 2.42%.

Related: Bear market novices get help from crypto veterans

Altcoins are just as bad as Bitcoins.

Everyday cryptocurrency market performance. Source: Coin360

Altcoins were also affected by Ether, BTC and stocks pulling back, which reversed earlier gains.

One bright spot was Ellipsis (EPS), Persistence(XPRT), and 0x [ZRX], which saw gains of 30%, 13.92%, and 12.34%, respectively.

The total cryptocurrency market is now worth $1.234 trillion. Bitcoin’s dominance rate at 44.6%.

com. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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