Stock Market Decline Sparks Crypto Selling Pressure

US stocks have turned lower, with all three major indexes in decline. The Nasdaq Composite was down 0.89% at 25,589.95 as of July 9. The Dow Jones Industrial Average fell 1.47% to 52,144.89, while the S&P 500 slipped 0.84% to 7,440.69.

A short-term negative forecast from PeriodShort-term indicates a decline in US stock markets is expected to spread to risk assets, leading to increased selling pressure across the crypto market. Bitcoin dominance is rising, while the total market cap is down 3.31%. Net outflows in South Korean won are consistent with a preference for defensive positions.

If stock market volatility subsides, the crypto bear market is expected to ease; however, if the VIX rises further, the market is projected to face additional downward pressure. In the mid-term, the forecast remains neutral, with limited signs of a liquidity crunch and the dollar index remaining flat.