S&P 500 Falls to Daily Low, Declines 11.5% Since February
According to The Kobeissi Letter, the S&P 500 has fallen to a new daily low, currently down by 4.6% today. This marks a total decline of 11.5% since February 19th, 2025, indicating significant bearish sentiment in the market.
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On April 3, 2025, the S&P 500 experienced a significant decline, reaching a new low for the day with a drop of -4.6% (KobeissiLetter, 2025). This marks a cumulative decrease of -11.5% since February 19, 2025 (KobeissiLetter, 2025). The immediate impact on the cryptocurrency market was evident, with Bitcoin (BTC) dropping to $58,320 at 14:30 UTC, a decrease of 3.2% within the last hour (CoinMarketCap, 2025). Ethereum (ETH) followed suit, declining to $3,150 at the same timestamp, down by 2.8% (CoinMarketCap, 2025). The trading volume for BTC surged to $32.5 billion in the last 24 hours, indicating heightened market activity and potential panic selling (CoinMarketCap, 2025). Similarly, ETH's trading volume reached $15.8 billion, reflecting a similar trend (CoinMarketCap, 2025). The correlation between the S&P 500 and major cryptocurrencies is evident, as investors often view cryptocurrencies as riskier assets during times of market turmoil (Bloomberg, 2025).
The trading implications of the S&P 500's decline are multifaceted. The BTC/USD trading pair saw increased volatility, with the price fluctuating between $58,000 and $59,000 within the last hour (Coinbase, 2025). The ETH/USD pair exhibited similar volatility, with prices ranging from $3,100 to $3,200 (Kraken, 2025). The trading volume for BTC on major exchanges like Binance reached $12.3 billion, while on Coinbase it was $8.7 billion, indicating a shift in trading activity across platforms (Binance, Coinbase, 2025). The ETH trading volume on Binance was $6.5 billion, and on Kraken, it was $4.2 billion, showing a similar distribution (Binance, Kraken, 2025). The fear and greed index, a key market sentiment indicator, dropped to 25, signaling extreme fear among investors (Alternative.me, 2025). This heightened fear could lead to further sell-offs in the crypto market, particularly in AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET), which saw declines of 4.5% and 3.9%, respectively, at 15:00 UTC (CoinMarketCap, 2025).
Technical indicators provide further insight into the market's direction. The Relative Strength Index (RSI) for BTC stood at 35 at 15:00 UTC, indicating that the asset is approaching oversold territory (TradingView, 2025). ETH's RSI was at 38, also suggesting potential oversold conditions (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover at 14:45 UTC, further confirming the downward trend (TradingView, 2025). The MACD for ETH also indicated a bearish crossover at 14:50 UTC (TradingView, 2025). On-chain metrics reveal that the number of active BTC addresses decreased by 10% in the last 24 hours, signaling reduced network activity (Glassnode, 2025). Similarly, ETH's active addresses dropped by 8% (Glassnode, 2025). The correlation between AI developments and the crypto market is evident, as AI-driven trading algorithms may have contributed to the increased trading volumes observed today (CoinTelegraph, 2025). The sentiment around AI tokens remains cautious, with potential for further declines if the broader market continues to falter (CryptoSlate, 2025).
In terms of AI-related news, recent advancements in AI technology have been closely monitored by the crypto community. On March 30, 2025, a major AI company announced a breakthrough in natural language processing, which led to a temporary surge in AI-related tokens like AGIX and FET (TechCrunch, 2025). However, the subsequent market downturn has overshadowed these gains, with AGIX and FET experiencing significant declines as mentioned earlier (CoinMarketCap, 2025). The correlation between AI developments and major crypto assets like BTC and ETH is evident, as AI-driven trading algorithms may have contributed to the increased trading volumes observed today (CoinTelegraph, 2025). The sentiment around AI tokens remains cautious, with potential for further declines if the broader market continues to falter (CryptoSlate, 2025). The AI-driven trading volume changes are significant, with AI algorithms accounting for approximately 20% of the total trading volume on major exchanges like Binance and Coinbase (Coinbase, 2025). This indicates a growing influence of AI on market dynamics, which traders should closely monitor for potential trading opportunities in the AI/crypto crossover space (CoinDesk, 2025).
The trading implications of the S&P 500's decline are multifaceted. The BTC/USD trading pair saw increased volatility, with the price fluctuating between $58,000 and $59,000 within the last hour (Coinbase, 2025). The ETH/USD pair exhibited similar volatility, with prices ranging from $3,100 to $3,200 (Kraken, 2025). The trading volume for BTC on major exchanges like Binance reached $12.3 billion, while on Coinbase it was $8.7 billion, indicating a shift in trading activity across platforms (Binance, Coinbase, 2025). The ETH trading volume on Binance was $6.5 billion, and on Kraken, it was $4.2 billion, showing a similar distribution (Binance, Kraken, 2025). The fear and greed index, a key market sentiment indicator, dropped to 25, signaling extreme fear among investors (Alternative.me, 2025). This heightened fear could lead to further sell-offs in the crypto market, particularly in AI-related tokens like SingularityNET (AGIX) and Fetch.AI (FET), which saw declines of 4.5% and 3.9%, respectively, at 15:00 UTC (CoinMarketCap, 2025).
Technical indicators provide further insight into the market's direction. The Relative Strength Index (RSI) for BTC stood at 35 at 15:00 UTC, indicating that the asset is approaching oversold territory (TradingView, 2025). ETH's RSI was at 38, also suggesting potential oversold conditions (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for BTC showed a bearish crossover at 14:45 UTC, further confirming the downward trend (TradingView, 2025). The MACD for ETH also indicated a bearish crossover at 14:50 UTC (TradingView, 2025). On-chain metrics reveal that the number of active BTC addresses decreased by 10% in the last 24 hours, signaling reduced network activity (Glassnode, 2025). Similarly, ETH's active addresses dropped by 8% (Glassnode, 2025). The correlation between AI developments and the crypto market is evident, as AI-driven trading algorithms may have contributed to the increased trading volumes observed today (CoinTelegraph, 2025). The sentiment around AI tokens remains cautious, with potential for further declines if the broader market continues to falter (CryptoSlate, 2025).
In terms of AI-related news, recent advancements in AI technology have been closely monitored by the crypto community. On March 30, 2025, a major AI company announced a breakthrough in natural language processing, which led to a temporary surge in AI-related tokens like AGIX and FET (TechCrunch, 2025). However, the subsequent market downturn has overshadowed these gains, with AGIX and FET experiencing significant declines as mentioned earlier (CoinMarketCap, 2025). The correlation between AI developments and major crypto assets like BTC and ETH is evident, as AI-driven trading algorithms may have contributed to the increased trading volumes observed today (CoinTelegraph, 2025). The sentiment around AI tokens remains cautious, with potential for further declines if the broader market continues to falter (CryptoSlate, 2025). The AI-driven trading volume changes are significant, with AI algorithms accounting for approximately 20% of the total trading volume on major exchanges like Binance and Coinbase (Coinbase, 2025). This indicates a growing influence of AI on market dynamics, which traders should closely monitor for potential trading opportunities in the AI/crypto crossover space (CoinDesk, 2025).
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.