Bitcoin Dips Below $64K as U.S. Equity Selloff Stalls Crypto Rebound

Within an hour, the cryptocurrency with the largest market capitalization saw a 2% decrease in value, dipping as low as $63,890 after being traded above $66,000 during the session. At the time of publication, Bitcoin was being exchanged for $64,000, representing a 0.5% decline over the past 24 hours.

As a researcher studying the stock market, I’ve observed that during recent sell-offs, key U.S. equity indexes experienced significant downturns. The tech-heavy Nasdaq Composite dropped by 2.7%, while the S&P 500 declined by 1.3%. Notably, tech megacap stocks like Nvidia (NVDA), which had significantly contributed to these benchmarks’ ascent to new all-time highs, have faced challenges in the past few days.

According to Joel Kruger, the head strategist at LMAX Group, the ongoing crypto rally could potentially lose momentum if the stock market downturn worsens and leads to a more significant correction. However, over an extended period, cryptocurrencies may serve as a protective haven for investors looking to exit the stock market.

In a note released on Wednesday, Kruger expressed worry over the current condition of the U.S. stock market. He noted the potential for an imminent significant downturn that could trigger a much-needed correction.

In such a scenario, there would still be compelling motivations to purchase Bitcoin as a protective investment, and significant incentives to acquire other cryptocurrencies during price downturns due to their innovative potential.