Wall Street Plunges, Bitcoin Follows: Are We Heading Towards A Major Crisis?

Bitcoin (BTC) fell to $78,000 this Monday, losing 4% on the day, as the stock markets collapse. According to recent crypto data, the BTC/USD pair hit $79,170 on Bitstamp, continuing a downward trend that began before the weekly close. What’s next for Bitcoin?

Bitcoin falls below $78,000 as Wall Street collapses

The fall of Bitcoin is part of a broader context of retreat from riskier assets, where the crypto market has just lost hundreds of millions of dollars in just a few hours. Wall Street opened in the red this Monday, with a drop of 2% for the S&P 500 and 3.5% for the Nasdaq Composite Index. The Nasdaq 100, in particular, has officially entered correction territory after losing more than 10% from its recent peaks. Furthermore, several macroeconomic trends highlight investor nervousness:

• The price of gold has risen by 50% in 13 months, a sign of a flight to safe-haven assets.

• Oil has fallen by 20% in 2 months, reflecting fears about global demand.

• The yield on 10-year U.S. Treasuries has decreased by 60 basis points over 2 months.

• The cryptocurrency market capitalization has lost $1 trillion during the same period.

• The market now anticipates three rate cuts in 2025, reflecting growing concerns about the U.S. economy.

In the face of these signals, Bitcoin investors seem to be betting on an imminent recession in the United States.

A week full of uncertainties

Crypto investors are in a state of uncertainty as Bitcoin hovers below the $78,000 mark. The current volatility of the markets, coupled with the decline in stocks and worrying economic signals, fuels fears of a deeper collapse. This week is therefore expected to be decisive.

Because several indicators need to be closely monitored, such as the movements of Bitcoin whales, market liquidity, or the Fed’s interest rate decisions. While some hope for a technical rebound, others fear a new wave of capitulations.

As markets wobble and Bitcoin suffers, the question remains open: Is this merely a correction, or can Bitcoin still avoid a total collapse?