Stocks and Bitcoin Crash Together: $2.5 Trillion Wiped as Fed Turns Hawkish
- Jobs Report Impact: The U.S. non-farm payrolls surged by 172,000 in May, significantly exceeding the expected 85,000, yet the market's negative reaction to a strong labor market led to a nearly $2 trillion loss in market cap, indicating a panic over rising rate expectations.
- Rate Hike Expectations Rise: With job openings increasing by 731,000 to 7.6 million in April, the market now anticipates two rate hikes by early 2027, reflecting a growing aversion to risk assets, which has further suppressed both stock and cryptocurrency performance.
- Bitcoin Plummets: Bitcoin has dropped over 53% from its October 2025 peak, with a 20% decline this week alone, resulting in a total market cap loss of approximately $2.5 trillion since last October, highlighting the strong correlation between crypto and stock markets amid investor pessimism.
- Liquidity Absorption: Major tech firms like Meta and SpaceX are planning to raise tens of billions through stock offerings, potentially absorbing market liquidity and causing capital to flow out of stocks and crypto, exacerbating downward pressure on the market as investors brace for upcoming IPOs.
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Technical Analysis for BTC
Technical Sentiment Analysis for Bitcoin (BTC). As of , Bitcoin (BTC) is exhibiting a Buy technical sentiment. Our proprietary analysis, which aggregates 8 technical signals, shows that 5 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status. Currently, the Relative Strength Index (RSI) for BTC stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the crypto.
Support, Resistance & Moving Averages. From a structural perspective, BTC is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
Bitcoin (BTC) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 44653.281 | 51892.095 | 60113.141 | 67351.955 | 75573.001 | 82811.815 | 91032.861 |
| Fibonacci | 51892.095 | 57797.762 | 61446.289 | 67351.955 | 73257.622 | 76906.149 | 82811.815 |
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