S&P 500 Rejection Signals Possible Bitcoin and Ethereum Crash as Risk Assets Weaken

Analyst Bennett warns of S&P 500 drop to 5,877, dragging crypto prices down. Bitcoin and Ethereum are struggling another drop could sink the crypto market further.

Stock market performance has been closely linked to cryptocurrency prices, serving as a potential indicator for upcoming trends in the crypto market. Recently, a technical analyst has warned of an impending S&P 500 drop, which could drag down crypto prices.

According to the analyst, known as Bennett, the S&P 500 has faced resistance at its highs, setting the stage for a potential decline toward the 5,877 region. This move could have implications for riskier assets like cryptocurrencies, considering the historical correlation between the stock market and digital currency prices.

The analyst's commentary and analysis in the tweet post specifically highlight the S&P 500's struggle to penetrate its resistance zone. Bennett points out that the most probable scenario is a drop toward the 5,877 level, which could drag down crypto prices, especially considering Ethereum's current market position.

A recent tweet by Bennett highlights his analysis, suggesting that the S&P 500 is facing difficulties in breaking past its resistance zone. He points out that the most likely scenario is a drop toward the 5,877 level, which might drag down crypto prices, especially considering Ethereum's current market position.

The chart shows a clear rejection at the recent highs, indicating a high probability of a downward move. If this prediction unfolds, it could spell trouble for risk assets, including cryptocurrencies.

Major moves in the stock market have historically influenced crypto prices, and this time could be no different. A decline in the S&P 500 could put selling pressure on Bitcoin, Ethereum, and other altcoins.

Bennett's specific mention of Ethereum in the tweet suggests that its current market position could be impacted by the S&P 500's movement. If the stock index drops as predicted, Ethereum could face downward pressure, potentially leading to a significant price correction.

If equities enter a correction phase, investors may reduce their exposure to riskier assets, which could include cryptocurrencies.

Bitcoin's price has seen a drop of 2.4% in the last 24 hours, currently sitting at $96,313. However, the world's dominant cryptocurrency still maintains a strong presence in the overall market, with a dominance rate of 61.84%. This indicates that Bitcoin is faring better than most altcoins in the struggling market.

Ethereum's price performance is contrasting sharply, with a 5% decrease in the last 24 hours, bringing the second-largest cryptocurrency to a trading price of $2,623. This decline aligns with the broader market weakness, but Ethereum's steeper fall compared to Bitcoin raises concerns for its holders.