=Bitcoin price may hit $24K if US stock market crashes by 50%, analyst warns

=Leading cryptocurrency analysts are warning investors about the potential risk of a significant Bitcoin price drop in case of a large-scale correction in the US stock market. According to the pessimistic scenario considered by experts, Bitcoin could fall to the $23,980 level if traditional markets experience a 50% decline. This warning emerged against the backdrop of observations regarding institutional investor behavior and data on capital flows into Bitcoin ETFs.

The main cause for concern has been weak investment flows into Bitcoin ETFs, which serve as an important indicator of institutional interest in cryptocurrency. Analysts have recorded a significant decrease in demand from US investors, traditionally considered the driving force behind the digital asset market. Major players are demonstrating caution, refraining from aggressive purchases at current levels. This may indicate that institutional investors are waiting for additional clarity regarding the macroeconomic situation before increasing their exposure to the cryptocurrency market.

Historically, Bitcoin has shown high correlation with the US stock market, especially with the technology sector. During periods of significant turmoil in traditional markets, cryptocurrencies often experience even greater losses due to their high volatility and risk profile. Investors tend to sell the most speculative assets first during liquidity crises, which explains the potential amplitude of the decline. Past examples, including the March 2020 crash at the onset of the COVID-19 pandemic, showed that Bitcoin can lose over 50% of its value in a short period during global market panics.

For the cryptocurrency market, such a scenario would have far-reaching consequences. First, it could lead to mass liquidations of leveraged positions and further intensification of the decline through a cascade effect. Second, prolonged weakness could undermine the confidence of retail investors who have only recently begun returning to the market after the previous bear cycle. Third, regulatory authorities might use the crisis as a pretext to strengthen control over the crypto industry, citing its instability and risks to investors.

For investors, the current situation requires a balanced approach and risk management strategy. It is recommended to hold positions but not increase exposure until the macroeconomic situation stabilizes. Stop-losses should be set at the $25,000-$26,000 level to protect capital from sudden crashes. Experienced traders may consider diversifying their portfolio by including defensive assets and holding a larger share of liquid funds for potential purchases at lower levels. Long-term investors who believe in Bitcoin's fundamental value may consider the $24,000-$25,000 levels as a potential accumulation zone, but only when using a dollar-cost averaging strategy instead of one-time large purchases.