The whole cryptocurrency market has undergone a major correction, and selling pressure on Bitcoin and other altcoins is still quite strong. Despite its ongoing upward trajectory, analysts think the S&P 500 is approaching a risky area that was recently experienced before to the 1929 Great Depression and the 2008 financial crisis. Additionally, the increasing US dollar index may put pressure on riskier assets like stocks and cryptocurrency.
The Crypto Market Has Corrected Even with Fed Rate Cuts
Fed Chair Jerome Powell made a significant shift in US monetary policy earlier this week by announcing a 25 basis point interest rate decrease. Since then, there has been no activity in the cryptocurrency market, which has instead become a sell-the-news event. Despite failing to provide a daily close over $117,200 for persistent upward movement, Bitcoin (BTC) is still trading below $116,000.
In contrast, leading altcoins like as Dogecoin (DOGE), Solana (SOL), Ethereum (ETH), and XRP have all experienced a 5% decline in value over the last week. According to Coinglass statistics, 24-hour liquidations have increased to $283 million, with $242 million of that amount going to extended liquidations.
Additionally, the association between Bitcoin (BTC) and the larger cryptocurrency market is eroding. On Friday, September 19, the S&P 500 reached a new all-time high above 6,600. The triple witching expiration in September might cause short-term market turbulence, according to cryptocurrency expert Ted Pillows. His prediction is that the altcoin market will correct by 15–25%, which might impact popular altcoins such as ETF, XRP, SOL, DOGE, and others.
The Dollar Index and S&P 500 are in dangerous territory
While the S&P 500 continues to rise in response to Fed rate cuts, crypto expert Ted Pillows warns that it is now approaching perilous territory. Pillows commented on the S&P 500’s current trajectory, stating that the index has only reached its upper trendline resistance for the third time in history.
According to Pilows, the prior two incidents occurred at the same time as the 1929 Great Depression and the 2008 global financial crisis.
According to market expert Ted Pillows, the US Dollar Index (DXY) is rebounding from a crucial support level. Historically, a rising dollar has indicated adverse pressure on risk-on assets, including cryptocurrency.
Nonetheless, Pillow feels that investors must see this short-term suffering through before we begin a parabolic rebound into Q4. Analysts in the cryptocurrency market predict a BTC price climb to $150K before the end of the year, as well as the beginning of an enormous altcoin season.
