Bitcoin (BTC) Price Continues to Face Selling Pressure, Correcting Another 2% Today and Dropping to $80K Levels

Bitcoin price continues to face selling pressure, correcting another 2% today and dropping to $81,500 levels. Considering the comparison between BTC and US equity indices

Bitcoin (BTC) price continues to face selling pressure, correcting another 2% today and dropping to $81,500 levels. Considering the comparison between BTC and US equity indices like Nasdaq and S&P 500, they appear to be forming a Death Cross in the coming weeks, hinting at a potential bearish momentum ahead. Analysts are curious as to whether BTC will finally crash under $80K, before resuming any upside move ahead.

What Happens to Bitcoin Price Next, Along With S&P 500, and Nasdaq?

Over the past several years, Bitcoin performance has been closely linked to the S&P 500 and Nasdaq indices. During the last three trading sessions from Wednesday to Friday, the S&P 500 has eroded a massive $2 trillion of investors’ wealth. The sell-off didn’t stop there—after the markets closed on Friday, S&P 500 futures plunged further, erasing an additional $120 billion within minutes, as per The Kobeissi Letter.

Despite a brief relief rally in mid-March, the rally was undone as soon as Trump imposed 25% auto tariffs. Bitcoin price also faced a similar scenario after attempting a rally past $90,000, however, it faced strong rejection at $89,000. Trump tariffs on Russia further threaten pushing Bitcoin under $80,000.

As per Barchart data, BTC, along with S&P 500 and Nasdaq, is forming a death cross pattern. Analysts are speculating on the market behavior leading up to this technical event, questioning whether price declines ahead of these Death Crosses might mark a market bottom. Historical patterns have occasionally shown such setups, with the actual cross aligning with the end of a downward trend. Thus, we can see some major volatility this week ahead.

Popular economist Peter Schiff took this moment to criticize Bitcoin’s status as Digital Gold adding: “Gold is trading in new record territory again this evening. Gold is above $3,090 for the first time, with a new record high so far tonight of $3,097. In contrast, risk assets like stocks and Bitcoin are selling off again. If you still think Bitcoin is digital gold, think again”.

Is BTC Following Global M2 Money Supply?

While there’s been a strong ongoing narrative that Bitcoin price will rally along with global M2 money supply, crypto analyst Ali Martinez says that investors should approach this with caution.

Martinez countered this claim by pointing out a significant trend in global money supply. According to the analyst, the global money supply has actually dropped by nearly $1 trillion over the past two weeks. Thus, he casts doubt on the expectations of a liquidity-driven bullish outlook for Bitcoin.

Additionally, analyst Ali Martinez also reported a significant sell-off by Bitcoin miners over the past week. According to Martinez, miners offloaded more than 2,400 BTC during this period, which amounts to approximately $220 million.

US PCE, Sticky Inflation Puts Pressure on BTC

Following the release of core US PCE data last week, which highlights strong inflationary pressure, market analysts are cautious that the liquidity tightening can continue for longer than expected.

As of press time, Bitcoin price is trading 1.8% down at $81,664 with daily trading volumes around $17.2 billion. The BTC futures open interest is down 2.7%, slipping under $53 billion, while the 24-hour liquidations have soared to $64 million, with $54 million in long liquidations, as per the Coinglass data.