Everyone is saying that panic in the U.S. stock market is spreading to crypto. Honestly, I’m not so sure. U.S. stocks have been rising for a full year, while crypto has been falling for a year. How much room is there for crypto to fall further at this point? It’s already fallen in advance. And yesterday, it was really just Bitcoin that fell sharply. Many altcoins didn’t break below key levels. When Bitcoin continued to slide this morning, altcoins were still holding steady. Ethereum’s support is very strong. The broader U.S. stock market fell very sharply yesterday. If crypto had behaved like it did over the past few months, Ethereum would have fallen by at least 20 percent.

It was just like 2020: after the broader U.S. stock market moved sideways and peaked for a while, crypto kept rising for three to five months. Small-cap U.S. stocks also ran out of steam toward the end of 2020. That’s when the money flowed into crypto.