The 90-day correlation between Bitcoin (BTC) and the S&P 500 reached an all-time high during the COVID-related market crash in March, when investors frantically sold all their risk-on assets for cash. The correlation reverted in the six months that followed. However, in September, the correlation steepened again.
The Nasdaq Composite Index plunged 4.1% overnight. Tesla, in particular, plunged 21%. Last night’s heavy drop at the opening of the equities market also caused the price of BTC to decline to as low as $9,850, as per OKEx’s BTC Index price. BTC lost 1.94% over the last 24 hours and is currently trading just below $10,100. However, as the equity market continues to pull back, BTC remains above its low from Sept. 5.
The total crypto market capitalization lost another 2% and fell below $330 billion, as BTC dominance added 0.1% and increased to 56.75%, as per data from CoinGecko.
Major altcoins all saw declines ranging between 2% and 4%, with the exception of TRON ( TRX). There have been over 7 billion TRX locked in TRON’s liquidity mining project, SUN, as of today, which is constraining sell pressure. TRX climbed 7.7% overnight and is trading back to around $0.035.
The SushiSwap ( SUSHI) migration is coming up in approximately eight hours. The current total value locked in SUSHI is roughly $1.2 billion. This could be a defining moment in decentralized finance after an anonymous developer copied a VC-funded project, Uniswap, with only the addition of a SUSHI token, and drained 80% of Uniswap’s liquidity in 10 days.
Over the past 24 hours, SUSHI’s price has fallen 19% — making it the biggest loser among all of the cryptocurrencies listed on OKEx.
Top altcoin gainers and losers
LBA/USDT +18.56%
CVP/USDT +16.43%
SWFTC/USDT +15.52%
YFV/USDT -16.01%
JFI/USDT -17.61%
SUSHI/USDT -19.05%
Cred ( LBA) is today’s top gainer, with an 18.56% return. PowerPool Concentrated Voting Power ( CVP) rebounded quickly and added 16.43% overnight, though it has lost roughly 60% over the last seven days.
The DeFi sector didn’t perform well overnight. Other than SUSHI, the other altcoins on the top losers list are also DeFi tokens — with JackPool.finance ( JFI) and YFValue ( YFV) losing 17.61% and 16.01%, respectively.
BTC technical analysis
BTC still shows no clear signs of stopping its decline and entering into recovery. The foremost cryptocurrency has repeatedly dipped to $9,800 but has been unable to break below this support. The $10,370 resistance level remains in focus, which is a short-term threshold for a possible bullish reversal. If BTC closes below the $9,800 support, the next support areas are around $9,300 to $9,500.
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