Cryptocurrencies Fall in Tandem with Stock Market: Bitcoin and Nasdaq's Correlation Pressure

This week, as the stock market experienced a significant correction, the cryptocurrency market also responded with a chain reaction. Data shows that Bitcoin prices came under pressure, while mainstream coins like Ethereum also collectively declined. This phenomenon once again confirms the increasingly close relationship between crypto assets and traditional stock markets. Currently, the market generally believes that the direction of the stock market will largely determine the short-term trend of the crypto market.

Sharp Stock Market Decline Drags Down Crypto Market

The Nasdaq index plummeted 1.6% during this correction, and the cryptocurrency market also came under pressure. Bitcoin faced obvious downward pressure, falling from its previous high to around $65,700, with a 24-hour decline of about 1.5%. Ethereum also couldn’t escape the downward trend of the stock market, dropping below the psychological level of $1,900, with a decline of over 2%.

This correlation has become a common market phenomenon: Bitcoin tends to perform relatively independently when stocks are rising, but once the stock market declines, crypto assets almost inevitably follow suit. Industry insiders point out that this high correlation reflects synchronized deleveraging by institutional funds in both markets. When traditional stocks are under pressure, investors tend to sell off high-risk assets, including cryptocurrencies.

Trading Platforms and Mining Stocks Under Significant Pressure

Major US crypto trading platforms performed particularly poorly. Coinbase (COIN) and Robinhood (HOOD) both saw their stock prices drop more than 8%, making them some of the biggest losers of the day. Both platforms confirmed in their latest earnings reports that weak crypto markets in the last quarter of 2025 directly eroded trading revenue, and the downward trend since 2026 has further dampened trading activity.

Other crypto-related listed companies also performed poorly: MicroStrategy (MSTR) down 4.2%, Circle Financial (CRCL) down 4.3%, and Bitcoin mining company Hut 8 (HUT) down 6.6%. These performances reflect that, when the overall stock market is under pressure, high-risk crypto-related companies are often the first to be affected.

Market Fear and Greed Index Hits Record Highs

The widely watched Crypto Fear & Greed Index dropped to just 5 this week, reaching an “extreme fear” level. This extreme data even surpasses the panic levels seen during multiple crashes in the 2022 crypto winter and is far beyond the market turbulence caused by the COVID-19 pandemic in 2020. The spread of extreme fear indicates that market participants’ concerns about the outlook are at an all-time high.

Senior Standard Chartered analyst Geoff Kendrick recently lowered his 2026 price targets for major coins like Bitcoin and Ethereum. Bitcoin is forecasted to potentially fall to around $50,000, while coins like Ethereum, Solana, BNB, and AVAX face similar downside risks.

Signs of Rebound Emerge, Stock Market Stability Is Key

Notably, positive signals are beginning to appear in the market. As international tensions eased—particularly with the pause in conflicts at Iran’s energy facilities—Bitcoin surged above $70,000 last Monday and maintained most of its gains. Mainstream altcoins like Ethereum, Solana, and Dogecoin also rose about 5%. Mining stocks experienced technical rebounds driven by a broader stock market rally, with the S&P 500 and Nasdaq both rising about 1.2%.

From a technical perspective, analysts note that Bitcoin’s next move depends critically on the stability of international geopolitical situations. If tensions continue to ease and the oil market remains stable, Bitcoin could test the $74,000 to $76,000 range again. Conversely, if geopolitical risks escalate, the crypto market could face greater pressure, with prices potentially retreating toward the mid-$60,000s.

Overall, the current correlation between the crypto market and stocks has become the norm. Investors should closely monitor the performance of traditional stock markets, especially the Nasdaq, as this will directly influence the short-term performance of crypto assets. The future trend will depend on stock market stability and the development of international geopolitical situations.