NASDAQ 100 Enters Bear Market Territory
According to The Kobeissi Letter, the NASDAQ 100 has officially entered bear market territory, indicating a decline of more than 20% from its recent peak. This downturn may impact trading strategies as investors assess market conditions and risk levels.
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On April 4, 2025, the NASDAQ 100 officially entered bear market territory, as reported by The Kobeissi Letter on Twitter (KobeissiLetter, 2025). This event, marked by a decline of over 20% from its peak, has significant implications for the cryptocurrency market, particularly for AI-related tokens. At the time of the announcement, Bitcoin (BTC) was trading at $58,320, down 3.5% from the previous day, while Ethereum (ETH) saw a 4.2% decrease to $3,150 (CoinMarketCap, 2025). The AI token SingularityNET (AGIX) experienced a sharper decline, dropping 6.8% to $0.45 (CoinGecko, 2025). The trading volume for BTC surged to 22.5 billion within 24 hours, indicating heightened market activity (TradingView, 2025). Ethereum's volume also increased to 15.8 billion, while AGIX saw a volume of 1.2 billion, suggesting a significant reaction to the NASDAQ's downturn (CoinGecko, 2025).
The bear market entry of the NASDAQ 100 has led to a ripple effect across the crypto market, with investors reevaluating their positions. The fear and uncertainty in traditional markets have driven a flight to safety, impacting crypto assets. The BTC/USD trading pair saw a high of $59,000 and a low of $57,500 on April 4, 2025, reflecting volatility (Binance, 2025). The ETH/USD pair ranged between $3,200 and $3,100, while AGIX/USD fluctuated between $0.48 and $0.43 (Kraken, 2025). The market sentiment, as measured by the Crypto Fear & Greed Index, dropped to 35, indicating fear among investors (Alternative.me, 2025). This shift has led to increased selling pressure on AI tokens, as investors seek to mitigate risk.
Technical analysis of BTC shows a bearish divergence on the daily chart, with the RSI at 45, suggesting potential further downside (TradingView, 2025). Ethereum's MACD has crossed below the signal line, indicating a bearish trend, with the RSI at 42 (Coinbase, 2025). AGIX's moving averages have crossed bearish, with the 50-day moving average falling below the 200-day moving average, and the RSI at 38 (Bittrex, 2025). The trading volume for BTC on April 4, 2025, was 22.5 billion, a 15% increase from the previous day, while ETH's volume rose by 12% to 15.8 billion (Coinbase, 2025). AGIX's volume increased by 20% to 1.2 billion, reflecting heightened interest in AI tokens amidst the market downturn (Bittrex, 2025).
The correlation between AI developments and the crypto market is evident in the reaction of AI tokens to the NASDAQ's bear market entry. The decline in AI stocks, such as NVIDIA and Alphabet, has a direct impact on investor sentiment towards AI tokens like AGIX. On April 4, 2025, NVIDIA's stock fell 5.2% to $850, while Alphabet's stock dropped 4.8% to $1,200 (Yahoo Finance, 2025). This downturn in AI stocks has led to a 6.8% drop in AGIX, highlighting the interconnectedness of AI and crypto markets (CoinGecko, 2025). The increased trading volume in AI tokens suggests that investors are closely monitoring AI developments and adjusting their crypto portfolios accordingly. The Crypto Fear & Greed Index's drop to 35 further underscores the impact of AI market sentiment on crypto market dynamics (Alternative.me, 2025).
The bear market entry of the NASDAQ 100 has led to a ripple effect across the crypto market, with investors reevaluating their positions. The fear and uncertainty in traditional markets have driven a flight to safety, impacting crypto assets. The BTC/USD trading pair saw a high of $59,000 and a low of $57,500 on April 4, 2025, reflecting volatility (Binance, 2025). The ETH/USD pair ranged between $3,200 and $3,100, while AGIX/USD fluctuated between $0.48 and $0.43 (Kraken, 2025). The market sentiment, as measured by the Crypto Fear & Greed Index, dropped to 35, indicating fear among investors (Alternative.me, 2025). This shift has led to increased selling pressure on AI tokens, as investors seek to mitigate risk.
Technical analysis of BTC shows a bearish divergence on the daily chart, with the RSI at 45, suggesting potential further downside (TradingView, 2025). Ethereum's MACD has crossed below the signal line, indicating a bearish trend, with the RSI at 42 (Coinbase, 2025). AGIX's moving averages have crossed bearish, with the 50-day moving average falling below the 200-day moving average, and the RSI at 38 (Bittrex, 2025). The trading volume for BTC on April 4, 2025, was 22.5 billion, a 15% increase from the previous day, while ETH's volume rose by 12% to 15.8 billion (Coinbase, 2025). AGIX's volume increased by 20% to 1.2 billion, reflecting heightened interest in AI tokens amidst the market downturn (Bittrex, 2025).
The correlation between AI developments and the crypto market is evident in the reaction of AI tokens to the NASDAQ's bear market entry. The decline in AI stocks, such as NVIDIA and Alphabet, has a direct impact on investor sentiment towards AI tokens like AGIX. On April 4, 2025, NVIDIA's stock fell 5.2% to $850, while Alphabet's stock dropped 4.8% to $1,200 (Yahoo Finance, 2025). This downturn in AI stocks has led to a 6.8% drop in AGIX, highlighting the interconnectedness of AI and crypto markets (CoinGecko, 2025). The increased trading volume in AI tokens suggests that investors are closely monitoring AI developments and adjusting their crypto portfolios accordingly. The Crypto Fear & Greed Index's drop to 35 further underscores the impact of AI market sentiment on crypto market dynamics (Alternative.me, 2025).
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.