Crypto Signal Flashing Red: Could Ether's Lag Trigger a 10-20% S&P 500 Crash?
Marketwatch14 hours ago
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Crypto Signal Flashing Red: Could Ether's Lag Trigger a 10-20% S&P 500 Crash?

Market Sentiment
cryptocurrency
stockmarket
volatility
bitcoin
ethereum
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Summary:

  • Ether has surged 44% since July, far exceeding bitcoin's 4% gain.

  • A reversal where bitcoin outperforms ether could indicate rising market volatility.

  • The S&P 500 might face a 10-20% decline if this crypto signal flips, based on historical patterns.

Ether's Summer Surge Leaves Bitcoin Behind

Since early July, ether has dramatically outpaced bitcoin, surging 44% compared to bitcoin's modest 4% gain. This performance has caught the attention of investors, but a potential reversal could spell trouble for the stock market.

A Warning Sign for Market Volatility

According to Tom Essaye, founder and president of Sevens Report Research, if ether begins to lag bitcoin again, it could serve as a critical warning signal. Historical data suggests that such a shift often precedes increased stock-market volatility, with the S&P 500 at risk of a significant pullback—potentially between 10% and 20%.

Cryptocurrency coins on US dollar banknotes.

Photo: Getty Images

This correlation highlights the interconnectedness of crypto and traditional markets, emphasizing the importance of monitoring these signals for broader economic insights.

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