A closely followed crypto analyst is warning that the digital assets market may be heading lower if the correlation between crypto and stocks holds.
In a new thread, crypto trader Justin Bennett tells his 115,900 followers on the social media platform X that the crypto market may correct deeper as stocks tumble.
“If you use the stock market for clues about crypto (recommended), the S&P 500 is getting rejected from range highs [Friday]. The most likely path here seems like a move back to the 5,877 region. That could drag crypto with it, and considering where Ethereum is trading, it’s time to pay attention.”
Bennett also believes that the flagship crypto asset will continue to outperform altcoins based on Bitcoin (BTC) dominance (BTC.D) metric.
Bitcoin dominance currently stands at 61.92%. Traders use BTC.D to track if altcoins are outperforming Bitcoin as the metric calculates how much of the crypto market cap belongs to BTC.
Says Bennett,
“Remember this December 4th call on Bitcoin dominance? BTC dominance never looked back. As discussed in December, I wouldn’t be surprised to see BTC.D trend toward 72% in the coming months. Respect the pattern until proven otherwise.”
Lastly, he predicts that both BTC and Ethereum (ETH) will likely trade sideways in the near term with a bearish bias as markets react to US President Donald Trump’s latest comments on trade tariffs.
“Well, BTC shorts were squeezed more than ETH shorts. Considering how weak ETH has been, this isn’t a big surprise. Once again, the Bitcoin mid-range is serving as resistance after Trump’s comments about reciprocal tariffs. Chop chop.”
Bitcoin is trading for $96,715 at time of writing, flat on the day. Meanwhile, ETH is trading for $2,637 at time of writing, down 2.5% in the last 24 hours.
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