Bitcoin Plunges Amid Global Stock Market Sell-Off
Bitcoin fell 3.5% on Wednesday as global equity markets sold off. The S&P 500 dropped 2.1% and the Nasdaq slid 2.7%, driven by renewed inflation concerns and hawkish U.S. Federal Reserve comments. Traders reacted to stronger-than-expected consumer price index data, which raised doubts about the timeline for rate cuts. The sell-off intensified the correlation between bitcoin and traditional markets, highlighting growing risk-on, risk-off dynamics in the crypto sector. Market participants await the Fed’s next meeting for guidance on monetary policy. Trading volumes surged as investors de-risked portfolios across asset classes.
Bearish
Renewed inflation fears and hawkish Fed signals triggered a broad equity sell-off, dragging bitcoin lower and reinforcing its growing correlation with stocks. Similar sell-offs in 2022 showed that macro data can spark simultaneous declines across asset classes. In the short term, this news may fuel further volatility and risk-off trading in crypto. Over the long run, monetary policy outcomes and inflation trends will remain key drivers for bitcoin’s price movements.