A well-known crypto analyst has warned that if the current trend of Bitcoin and stocks moving in tandem continues, the digital asset market may face further declines.
In a recent update, crypto trader Justin Bennett shared that the performance of the broader market, particularly the S&P 500, could indicate potential downside in crypto. He pointed out that after encountering resistance at recent highs, the stock market is likely to retreat to the 5,877 level, which could drag crypto down as well. Bennett also highlighted that Ethereum’s current price action is crucial to monitor 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 sees it potentially reaching 72% in the coming months, maintaining his earlier prediction from December that Bitcoin would continue to outperform altcoins.
In terms of short-term price movement, Bennett predicts that both Bitcoin and Ethereum are likely to experience sideways trading with a bearish outlook. This sentiment arises following comments from U.S. President Donald Trump about trade tariffs, which have caused some market uncertainty.