Mott Capital analyst Michael Kramer said the drop in BTC price is imparting a red signal to the price of the stock market. He said that Wall Street is in a transitional period. He presumed that this can drive the stock market in a bearish direction. Here is what he exactly said on Marketwatch.com: Bitcoin is telling us the risk sentiment of the market overall is shifting, and we care about bitcoin because we care about risk sentiment,” Kramer wrote.

Bitcoin price

BTC prices are down 28% from a peak value of $64,829.14 in mid-April. Sunday’s trade was also too slow and choppy. This was due to the tweet from Tesla Inc. Kramer added that the bullish sentiment has been the recent trend in the market but the trend may reverse. Most of the stock prices are walking in closely with BTC, for example, Russell 2000 index RUT, + 2.46%. Since March 26, the Russell 2000 closed on its largest weekly percentage decline. Nasdaq Composite Index also followed the same pattern since 26th Feb. Kramer said “bitcoin is melting,” and added that it is possible that the asset may have further room to fall.

Few technical analysts see BTC hitting $42,000. Many other stocks were behaving lower Sunday night, like YM00, -0.37%, ES00, -0.33%, and NQ00, -0.36%. But the fact is that many analysts see stock prices rise in late 2021 but the same can’t be said about BTC.

Tom Lee, founder of Fundstrat Global Advisors said: "We saw a strong rally in the second half of the week. We believe this rally will carry over into this week. In fact, we think that stocks are still on track to make new highs before June 30th”.