Analyst Says BTC Will Suffer Impact of S&P 500 Rejecting Downtrend

• An analyst claims BTC will suffer the impact if the S&P 500 rejects the downtrend line.
• Bloomberg data suggests S&P 500’s year-end price goal was $4,950.
• Over $20 billion has disappeared from the global crypto market cap in 24 hours.

Kevin Svenson, a crypto influencer with over 117k followers on Twitter, proclaims that Bitcoin (BTC) may experience another significant round of depreciation, given the performance of the prominent stock market index, the S&P 500.

Making a prediction, Svenson claimed that if the S&P500 rejects the downtrend line, BTC will not handle it well with the recently damaged confidence. The crypto influencer also stated that “a stock market rejection” will become bad for crypto.

Importantly, a price rejection pattern often results in an uptrend due to the market’s reluctance to push the price below its support region.

According to Bloomberg, the average Wall Street estimate for the S&P 500’s year-end price goal was $4,950, with the highest prediction coming in at $5,330 and the lowest estimate coming in at $4,400. The S&P 500 is $4,026.12, with barely a 1% decrease in the last 24 hours.

Furthermore, the S&P 500 index tracks the performance of 500 major publicly traded companies in the United States, weighing the companies in the index by market capitalization. According to analysts, the price of crypto assets like Bitcoin usually moves in an uncorrelated pattern to the traditional stock market.

Therefore, the crypto influencer foresees investors dumping on crypto assets to join S&P 500 for more potential gain, as the recent bankruptcy of FTX heightened the fear, uncertainty, and doubt around the Bitcoin industry.

At the time of writing, over $20 billion has disappeared from the global crypto market cap in the last 24 hours, according to data on the market tracking website, CoinMarketCap.