The Daily Hodl
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams, Hacks & Breaches
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • Chainwire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams, Hacks & Breaches
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • Chainwire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise
No Result
View All Result
The Daily Hodl
No Result
View All Result

Blow to Bitcoin? Macro Warning From Goldman Sachs May Spell Trouble for BTC and Crypto Markets

by Daily Hodl Staff
April 27, 2020
in Bitcoin

A new warning on US equities from Goldman Sachs could spell trouble for Bitcoin and the overall crypto markets.

In a note to investors, the financial giant says the five biggest stocks in the S&P 500 now hold a whopping 20% share of the benchmark’s overall market cap. Similar shifts were reliable indicators of major market downturns in 1990, 2008, 2011 and 2016.

[the_ad id="93550"]

Via Bloomberg,

“Sharp declines in market breadth in the past have often signaled large market drawdowns. Narrow breadth can last for extended periods, but past episodes have signaled below-average market returns and eventual momentum reversals.”

Another significant stock market plunge may not bode well for BTC. Recent analysis from Coinbase explains why Bitcoin crashed alongside traditional markets last month, even though it often acts as an uncorrelated asset.

“When investments sharply fall, investors naturally seek out ‘safe haven’ assets — things that will not lose their value (usually USD). But everyone rushing to the exit at once produces a liquidity crisis, where the number of sellers far surpasses the number of buyers, which further drives prices lower and lower.

To add insult to injury, many large asset allocators held leveraged positions, where only $1 of real value was backing ~$2-$3 of borrowed value. When markets crashed, these leveraged positions were in jeopardy of becoming insolvent and being forced closed, further placing a premium on USD. The general sell-off combined with a massive deleveraging event resulted in an intense rush for cash. In these moments, investors do not sell what they want to sell, they sell whatever they can. This includes Bitcoin and other cryptocurrencies, but every liquid market saw deep losses on March 12th.”

Crypto analyst Josh Rager says all bets are off if equities take another big plunge.

Although he’s optimistic on Bitcoin’s price action from a technical perspective, Rager says crypto traders should only expect BTC to hold up if the stock market can avoid another big breakdown.

https://twitter.com/Josh_Rager/status/1252950286819262465

 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Submit a Press Release

Industry Announcements

  • Aster Launches 24/7 Stock Perpetual Contracts Trading With Exposure to US Equities
    July 16, 2025
  • The Sandbox Launches Largest LAND Sale to Date on GBM Auctions
    July 16, 2025
  • Vision (VSN) Has Arrived – The New Standard for User-Centric Token Ecosystems
    July 16, 2025
  • Snail, Inc. Announces Intent To Explore Proprietary USD-Backed Stablecoin
    July 16, 2025
  • MultiBank Group Announces Seven Million MBG Tokens Sold Out in Under One Hour During Initial Pre-Sale
    July 15, 2025
  • Allnodes Among First To Launch Bare Metal Servers Powered by AMD Threadripper 9000 Series
    July 15, 2025
  • Swarm Network Selects Walrus To Power Verifiable AI on Rollup.News
    July 15, 2025
Submit a Guest Post
ADVERTISEMENT
Bitcoin
$118,510.75
$118,510.75
0.68%
Ethereum
$3,350.13
$3,350.13
7.02%
BNB
$711.01
$711.01
3.46%
Solana
$171.14
$171.14
5.21%
XRP
$3.07
$3.07
5.37%

Spotlight

  • Bitcoin Setup Suggests Explosive Rally Incoming, According to Analyst Who Called 2021 Crypto Top
    July 9, 2025
  • Goldman Sachs Abruptly Raises Targets for S&P 500, Predicts Fed Cutting Rates Earlier Than Expected: Report
    July 9, 2025
  • Investor Tom Lee Says Bitcoin Adoption Still in ‘Earliest Days,’ Predicts US Banks Will Soon Hold BTC As Collateral
    July 9, 2025
  • Bitwise CIO Reveals 4,000x Prediction, Says Ethereum, XRP, Solana and Others Will Be Impacted From One Booming Trend
    July 9, 2025
DON'T MISS A BEAT
Crypto headlines delivered daily
to your inbox
BTC, ETH, XRP news alert options
By joining The Daily Hodl news list you agree to our
Terms and Conditions and Privacy Policy.
Featured Image: Shutterstock/Billion Photos

Covering the future of finance, including macro, bitcoin, ethereum, crypto, and web 3.

Categories

Bitcoin • Ethereum • Trading •
Altcoins • Futuremash • Financeflux •
Blockchain • Regulators • Scams •
HodlX • Press Releases

 

ABOUT US | EDITORIAL POLICY | PRIVACY POLICY
TERMS AND CONDITIONS | CONTACT | ADVERTISE

JOIN US ON TELEGRAM

JOIN US ON X

JOIN US ON FACEBOOK

COPYRIGHT © 2017-2025 THE DAILY HODL

No Result
View All Result
  • FEATURES
    • News
    • Bitcoin
    • Ethereum
    • Altcoins
    • Financeflux
    • Trading
    • NFTs
    • Blockchain
    • Futuremash
    • Regulators
    • Scams, Hacks & Breaches
  • HODLX
    • Latest Stories
    • FAQ
    • Submit Guest Post
  • INDUSTRY ANNOUNCEMENTS
    • Latest
    • Press Releases
    • Chainwire
    • Sponsored Posts
    • Submit Your Content
  • CRYPTO MARKETS
  • SUBMIT
    • Guest Post
    • Press Release
    • Sponsored Post
    • Advertise

© 2025 The Daily Hodl