Market Downturns Show Crypto’s Deep Ties to Stocks

Bitget App

Trade smarter

Bitget Academy2025/03/12 04:36

By:Bitget Academy

The relationship between stocks and crypto has grown stronger as more mainstream financial institutions engage in the crypto market. Recently, market downturns have affected both asset classes, with ETH nearing its 2022 crash levels while Bitcoin BTC remains significantly higher. Experts suggest that crypto is now deeply tied to broader economic trends.

Justin Barlow from Sei notes that major financial players like BlackRock increase crypto’s visibility in good times but also contribute to downturns when they reduce risk exposure. Since these institutions operate in both markets, a decline in traditional finance often drags crypto down with it.

Despite the current pain, long-term growth prospects for crypto remain strong. The cycles between highs and lows are accelerating, and market sentiment could shift quickly. The key takeaway is to focus on long-term adoption and user growth rather than daily price swings. While crypto may struggle in the short term, its increasing integration with traditional finance signals a maturing market that will continue evolving.

Source: Blockworks

Futures Market Updates

In the past 24 hours, both BTC and ETH futures saw a slight increase in open interest, with ETH (+1.15%) rising slightly more than BTC (+1.04%). However, trading volume declined significantly for both, with ETH futures experiencing a sharper drop (-29.60%) compared to BTC (-18.36%). Liquidations showed contrasting trends: BTC saw much higher short liquidations ($146M) than long ($40.8M), while ETH liquidations were more balanced. The long/short ratio for BTC remained nearly even at 50.47%/49.53%, whereas ETH had a slightly higher short bias (49.93%/50.07%). Lastly, funding rates remained low for both, with BTC (0.0010%) slightly higher than ETH (0.0006%), indicating weak bullish sentiment.

BTC Futures Updates

Total BTC Open Interest: $46.57B (+1.04%)

BTC Volume (24H): $108.08B (-18.36%)

BTC Liquidations (24H): $40.80M (Long)/$146.00M (Short)

Long/Short Ratio: 50.47%/49.53%

Funding Rate: 0.0010%

ETH Futures Updates

Total ETH Open Interest: $17.37B (+1.15%)

ETH Volume (24H): $51.23B (-29.60%)

ETH Liquidations (24H): $40.06M (Long)/$33.18M (Short)

Long/Short Ratio: 49.93%/50.07%

Funding Rate: 0.0006%

Top 3 OI Surges

BANANA: $18.86M (+337.85%)

TSTBSC: $33.18M (+260.96%)

GIGA: $5.53M (+226.85%)

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.

APR up to 10%. Always on, always get airdrop.

Lock now!