Bitcoin ends the week “on the edge” when the S&P 500 officially enters the bear market
Bitcoin (BTC) struggled to recover from its recent losses on May 21 after Wall Street trading gave zero respite.
The BTC price reflects sad stock developments
Data from Cointelegraph Markets Pro and TradingView showed that BTC / USD trading fell below $ 28,700 over the weekend, then added around $ 500.
Down 4.7% from the previous day̵[ads1]7;s $ 30,700 peak, the pair looked firmly tied at the time of writing after US stock indices saw a volatile last trading day of the week.
The S&P 500 managed to reverse after first falling in the open, but still confirmed trends in the bear market, and traded at 20% below the peaks from last year.
The S&P 500 has officially entered a bear market pic.twitter.com/N1lrcBdziT
– Fintwit (@fintwit_news) May 20, 2022
“Another crazy day in the stock market. Dow Jones -500 early in the day, so everything recovers and closes +8,” popular Twitter account Blockchain Backers commented on broader U.S. market performance.
Like Cointelegraph reportedhad various sources requested that Bitcoin should fall again in a manner similar to last week’s capitulation event.
To continue the conservative macro outlook, other Twitter commentator PlanC argued that external changes could still bring Bitcoin significantly down from its current level.
“If the Crypto market was in a bubble, I would say that 25k to 27.5k is the Bitcoin bottom, but there is a decent probability that macro factors will drag us down to 22-24k. Significant black swan, 15-20k will be an option . ” part of a chirping on the day read.
In addition to equities, the US dollar index (DXY) consolidated after a sharp decline from twenty-year highs.
May competes with 2021 for the worst recorded
With ten days left until the end of the month, BTC / USD risked May 2022 being the worst return in its history.
Related: Bitcoin needs to defend these price levels to avoid “much deeper” falls: Analysis
Data from the chain analysis resource Coinglass showed a monthly return of a total of -22% for Bitcoin, the largest withdrawal in any year apart from 2021s -35%.
2022, confirmed the overall numbers, were also the worst first five months of the year for Bitcoin since 2018.
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