This already happened earlier this week, when Bitcoin and Ethereum fell by 15% and 14%, marking the first time each asset fell below $40,000 and $3,000 since mid-March.
This price slump remains part and parcel of an ongoing market downturn in the broader crypto industry.
The crypto market tumbled by almost 10% earlier this week, causing the crypto market capitalization to drop to $1.84 trillion, per CoinMarketCap.
One of the most plausible reasons behind this downturn lies in similar slumps found in the equities markets.
At the start of this week, the S&P 500 was down 1.7%. The Nasdaq—a tech-focused exchange that often signals what might follow in crypto—shed over 2% of its total value at the start of this week too.
Bitcoin, in particular, has been correlating with traditional equities markets. Arcane Research recently revealed that Bitcoin’s price correlated with the S&P 500 more so in March than in any time since October 2020.