Leading cryptocurrencies moved sideways, while stocks rallied to record highs on Thursday as investors digested the U.S. economy’s first-quarter growth that fell short of forecasts.
Crypto Market Stuck
Bitcoin moved in a narrow band from the mid-$75,000s to mid-$76,000s, as volume dropped sharply in the past 24 hours.
Ethereum also wobbled in the $2,200 region amid a 47% drop in volume, while Dogecoin eked out a gain of 1.09%
Over $130 million was liquidated in the past 24 hours, with $71 million in long positions wiped out, according to Coinglass data.
Open interest in Bitcoin futures fell marginally by 0.46% over the last 24 hours. Retail and whale Binance derivatives traders were positioned “Bearish” on the apex cryptocurrency, with more short positions vis-à-vis longs.
“Fear” sentiment prevailed in the market, according to the Crypto Fear & Greed Index.
Top Gainers (24 Hours)
The global cryptocurrency market capitalization stood at $2.55 trillion, following a drop of 1.11% over the last 24 hours.
Stock Market Rebounds
Stocks bounced back into record territory on Thursday. The Dow Jones Industrial Average rose 790.33 points, or 1.62%, to end at 49,652.14. The S&P 500 lifted 1.02% to close at a new high of 7,209.01, while the tech-heavy Nasdaq Composite added 0.89% to settle at 24,892.31, also hitting a closing record.
The rally came as the U.S. economy grew less-than-expected in the first quarter. The GDP grew at an annualized rate of 2%, below economists’ expectations for a 2.3% expansion.
In other news, oil prices reversed course. The United States Oil Fund (NYSE:USO), which tracks West Texas Intermediate crude oil, closed down 2.35% at $147, after topping $150 the day before.
How Low Can Bitcoin Go?
Blockchain analytics firm CryptoQuant noted that previous Bitcoin cyclical lows came after “substantially deeper declines” from highs, with drawdowns of roughly 86% in 2015, 83% in 2018, and 76% in 2022. The current pullback, in comparison, has been 39%.
“The present retracement remains well short of the damage seen during prior capitulation phases,” CryptoQuant said. “This does not guarantee further downside, but current conditions still differ materially from past cyclical lows.”
Daan Crypto Trades, a widely followed cryptocurrency commentator on X, highlighted that May ranks sixth in average monthly returns and third in median returns based on Bitcoin’s historical data from 2013 to 2026.
They challenged the “Sell in May and go away” narrative, adding that “there is no clear seasonality to support this saying.”
“What is true is that starting may and going into the summer generally kicks off some months of lower volatility and price action,” the analyst added.
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