Key Points
- Post the White House industry summit, cryptocurrency prices, including Bitcoin, Ethereum, and XRP, have seen a decline.
- The Nasdaq 100 index, which tracks major tech companies, is likely to enter a technical correction, indicating a potential downturn in the coming weeks.
After the industry summit at the White House, led by President Donald Trump, the prices of cryptocurrencies have taken a downward turn.
Bitcoin and Altcoins Experience a Dip
Bitcoin’s price has fallen from its weekly high of $93,000 to $86,000. Altcoins like Ethereum, Solana, and Ripple have also experienced a drop of over 1%. This price drop was anticipated prior to the summit.
The U.S. stock market, including Bitcoin and other altcoins, may continue to see a decline. The Nasdaq 100 index, which monitors the largest technology companies, is on the verge of a technical correction. This occurs when an asset’s value decreases by 10% from a local peak.
Nasdaq 100 Index and Other Stock Indices
The Nasdaq 100 index has formed a double-top pattern at $22,137 and has moved below the neckline at $20,565. A double top is considered one of the most bearish chart patterns in technical analysis. The index has also fallen below the 200-day moving average, indicating a potential downturn in the coming weeks. The gap between the 200- and 50-day moving averages is also closing in, increasing the risk of a death cross formation.
Other significant U.S. stock indices, such as the S&P 500 and the Dow Jones, have also seen a decline in recent weeks. The S&P 500 index, for instance, has dropped by 6.3% from its peak this year. U.S. equities and cryptocurrencies often show a close correlation as they are both considered risk assets. As evident, Bitcoin and the S&P 500 index have a high correlation.
The prices of cryptocurrencies and stocks have retreated in the past few weeks due to concerns about stagflation in the U.S. Flash economic data indicates that the U.S. may be moving towards negative growth this quarter due to uncertainties regarding Trump’s tariffs. Concurrently, inflation, which is already high, may increase as companies raise prices to counterbalance the impact of tariffs.
Impact on Bitcoin, Ethereum, and XRP
If the U.S. stock market continues to decline, the prices of Bitcoin, Ethereum, and XRP may also continue to fall. XRP price has already formed a head and shoulders pattern and could face a strong bearish breakdown unless it moves above the right shoulder at $3.
Bitcoin is also at risk of further downside after forming a double-top pattern at $108,400. It has moved slightly below the neckline at $89,165 and is about to lose the 200-day moving average again. As such, there is a risk that it will drop to the key support at $73,550, the highest point in 2024.
Ethereum price is hovering above the key support level at $2,000, the neckline of the triple-top pattern at $3,000. This pattern points to a potential ETH price crash to $1,500 and below.
