- BTC and ETH peaked last month while SPX trends down.
- Bitcoin’s reaction to SPX weakness will be key.
- A new BTC low could trigger a rapid drop to $90K.
All Eyes on Bitcoin as Stocks Fall
Bitcoin ’s behavior is once again in the spotlight as the S&P 500 (SPX) shows signs of weakness. With traditional markets cooling off, including gold and major indices, traders are watching closely to see if Bitcoin will follow the trend—or decouple and show resilience.
Last month, both Bitcoin and Ethereum hit their local peaks, followed by a mild retreat. At the same time, the S&P 500 began to decline, raising questions about how crypto would respond in a broader risk-off environment.
A Repeat of April 2025?
The key metric to watch is whether Bitcoin makes a new local low. If it holds above its previous lows despite the stock market downturn, that would signal notable strength—similar to the pattern observed in April 2025. Back then, BTC held its ground during an SPX pullback, which was a precursor to a strong rally.
Traders are using this potential scenario as a signal. Holding steady could mean the market is favoring Bitcoin over traditional risk assets. That might also reinforce the idea that Bitcoin is maturing into a macro asset with its own narrative.
$90K in Sight if Support Fails
However, if Bitcoin does break its recent support levels and makes a new low, analysts expect the drop could accelerate rapidly. One possible target mentioned by traders is the $90,000 zone—a level that could act as psychological and technical support in a fast-moving market.
This divergence between strength and weakness hinges largely on how Bitcoin behaves in the coming days. Will it prove itself again, or follow traditional markets lower?
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