The bitcoin price slid below the $11,000 mark for the first time in more than a week on Tuesday, as the flagship cryptocurrency’s burgeoning inverse correlation with the S&P 500 came back to bite investors.
Bitcoin had entered the day trading sideways in the low $11,000s, where it had more or less languished since the Saturday sell-off that followed BTC’s brief foray above $12,000 last week. The dam broke around 10 am ET, and the bitcoin price cascaded below $11,000 to breach its lowest level since August 4.
Notably, the bitcoin price’s steep decline was accompanied by a phenomenal rally on Wall Street. The Dow Jones Industrial Average surged 500 points (nearly 2%), the S&P 500 rose 1.84%, and the Nasdaq cleared the 8,000 level following a 2.32% bounce. The CBOE VIX, which measures implied market volatility, fell 15%.