A well-known crypto analyst is warning that if the current trend of Bitcoin and stocks moving in tandem continues, the digital asset market could see further declines.
In a recent update, crypto trader Justin Bennett stated that the broader market’s performance, particularly the S&P 500, could indicate potential downside in the crypto market. He highlighted that after facing resistance at recent highs, the stock market is expected to pull back to the 5,877 level, which could also impact the crypto market. Bennett also mentioned that monitoring Ethereum’s current price action is crucial in this scenario.
Bennett also emphasized the dominance of Bitcoin in the market, suggesting that Bitcoin (BTC) will continue to lead while altcoins lag behind. Currently, Bitcoin dominance stands at 61.92%, and Bennett believes it could potentially reach 72% in the coming months, supporting his earlier prediction from December that Bitcoin would outperform altcoins.
Regarding short-term price movement, Bennett predicts that both Bitcoin and Ethereum are likely to experience sideways trading with a bearish outlook. This sentiment is influenced by comments made by U.S. President Donald Trump about trade tariffs, which have created market uncertainty.