Bitcoin Ends Week ‘On the Edge’ as S&P 500 Officially Enters Bear Market

Bitcoin (BTC) struggled to recoup its latest losses on May 21 after trading on Wall Street offered no respite.

BTC price reflects dull stock performance

Data from Cointelegraph Markets Pro and TradingView showed that BTC/USD trading dipped below $28,700 over the weekend, before moving up to around $500.

Falling 4.7% from the previous day’s $30,700 highs, the pair appeared to be firmly in range at the time of writing, after US stock indices saw a volatile last trading day of the week.

The S&P 500, which managed to reverse after initially falling on opening, nevertheless confirmed bear market trends, trading 20% ​​below its last year highs.

The S&P 500 has officially entered a bear market pic.twitter.com/N1lrcBdziT

— Fintwit (@fintwit_news) May 20, 2022

“Another crazy day in the stock market. Dow Jones -500 early in the day, then recover everything and close +8,” popular Twitter account Blockchain Backers commented on the broader performance of the US market.

“Bitcoin is still teetering on the edge.”

If CoinTelegraph reportedSeveral sources had called for Bitcoin to drop again in a manner similar to last week’s capitulation event.

Continuing the conservative macro outlook, fellow Twitter commenter PlanC argued that external shifts could still significantly lower Bitcoin from its current level.

“If the Crypto market was in a bubble, I would say 25k to 27.5k is the Bitcoin bottom, but there is a decent chance that macro factors will drag us to 22-24k. Significant black swan, 15-20k becomes a possibility,” part of a tweet on the reading day.

In addition to equities, the US dollar index (DXY) consolidated after a strong correction from its 20-year high.

May competes with 2021 for worst ever

With ten days left until the end of the month, BTC/USD was at risk of May 2022 turning out to be the worst return in its history.

Related: Bitcoin Must Defend These Price Levels To Avoid A ‘Much Deeper’ Drop: Analysis

Data from on-chain analytics source Coinglass showed monthly returns totaling -22% for Bitcoin, the biggest pullback of any year, save for the -35% from 2021.

2022, the collective numbers confirmed, was also the worst performing first five months of the year for Bitcoin since 2018.

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