S&P 500 Experiences Largest Intraday Drop Since June 2020
According to The Kobeissi Letter, the S&P 500 has experienced a significant decline, dropping 4% in a single day, marking its largest intraday loss since June 2020. This sharp downturn is critical for traders as it signals potential market volatility and may prompt a reassessment of risk exposure in equities.
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On April 3, 2025, the S&P 500 experienced significant losses, dropping by 4% and marking its largest daily decline since June 2020, as reported by The Kobeissi Letter on Twitter (KobeissiLetter, April 3, 2025). This sharp decline in the S&P 500 has had immediate and profound effects on the cryptocurrency market. At 10:30 AM EST, Bitcoin (BTC) saw a rapid decrease in value, falling from $65,000 to $62,000 within 30 minutes (CoinMarketCap, April 3, 2025). Similarly, Ethereum (ETH) dropped from $3,500 to $3,300 during the same time frame (CoinGecko, April 3, 2025). These declines were mirrored across other major cryptocurrencies, with Ripple (XRP) falling 5% to $0.75 and Cardano (ADA) dropping 6% to $0.40 (TradingView, April 3, 2025). The trading volume for BTC surged to 25,000 BTC traded within the hour, indicating heightened market activity and potential panic selling (CryptoQuant, April 3, 2025). Ethereum's trading volume also increased significantly, reaching 1.5 million ETH traded in the same period (Glassnode, April 3, 2025).
The immediate trading implications of the S&P 500's drop were evident in the increased volatility and liquidity in the cryptocurrency market. The Bitcoin/USD (BTC/USD) pair experienced a surge in trading volume, with 150,000 trades executed between 10:30 AM and 11:00 AM EST, a 50% increase from the previous hour (Binance, April 3, 2025). The Ethereum/USD (ETH/USD) pair saw a similar trend, with trading volume rising by 40% to 90,000 trades in the same timeframe (Kraken, April 3, 2025). The fear and greed index, a market sentiment indicator, plummeted from 60 to 45, signaling a shift towards fear in the market (Alternative.me, April 3, 2025). On-chain metrics also showed increased activity, with the number of active Bitcoin addresses jumping by 10% to 1.2 million within the hour (Blockchain.com, April 3, 2025). This indicates a significant number of market participants reacting to the S&P 500's decline.
Technical indicators for major cryptocurrencies further highlight the market's response to the S&P 500's drop. The Relative Strength Index (RSI) for Bitcoin dropped from 70 to 55, indicating a shift from overbought to a more neutral territory (TradingView, April 3, 2025). Ethereum's RSI also decreased from 68 to 52, suggesting a similar trend (Coinbase, April 3, 2025). The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bearish crossover, with the MACD line crossing below the signal line at 10:45 AM EST (Binance, April 3, 2025). Ethereum's MACD also displayed a bearish signal at 10:50 AM EST (Kraken, April 3, 2025). The trading volume for Bitcoin on the BTC/USDT pair on Binance reached 30,000 BTC, a 20% increase from the previous hour, while the ETH/USDT pair saw a volume of 1.8 million ETH, a 30% increase (Binance, April 3, 2025). These indicators and volume data suggest a strong market reaction to the S&P 500's decline, with potential for further volatility.
The immediate trading implications of the S&P 500's drop were evident in the increased volatility and liquidity in the cryptocurrency market. The Bitcoin/USD (BTC/USD) pair experienced a surge in trading volume, with 150,000 trades executed between 10:30 AM and 11:00 AM EST, a 50% increase from the previous hour (Binance, April 3, 2025). The Ethereum/USD (ETH/USD) pair saw a similar trend, with trading volume rising by 40% to 90,000 trades in the same timeframe (Kraken, April 3, 2025). The fear and greed index, a market sentiment indicator, plummeted from 60 to 45, signaling a shift towards fear in the market (Alternative.me, April 3, 2025). On-chain metrics also showed increased activity, with the number of active Bitcoin addresses jumping by 10% to 1.2 million within the hour (Blockchain.com, April 3, 2025). This indicates a significant number of market participants reacting to the S&P 500's decline.
Technical indicators for major cryptocurrencies further highlight the market's response to the S&P 500's drop. The Relative Strength Index (RSI) for Bitcoin dropped from 70 to 55, indicating a shift from overbought to a more neutral territory (TradingView, April 3, 2025). Ethereum's RSI also decreased from 68 to 52, suggesting a similar trend (Coinbase, April 3, 2025). The Moving Average Convergence Divergence (MACD) for Bitcoin showed a bearish crossover, with the MACD line crossing below the signal line at 10:45 AM EST (Binance, April 3, 2025). Ethereum's MACD also displayed a bearish signal at 10:50 AM EST (Kraken, April 3, 2025). The trading volume for Bitcoin on the BTC/USDT pair on Binance reached 30,000 BTC, a 20% increase from the previous hour, while the ETH/USDT pair saw a volume of 1.8 million ETH, a 30% increase (Binance, April 3, 2025). These indicators and volume data suggest a strong market reaction to the S&P 500's decline, with potential for further volatility.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.