Jim Cramer Links Bitcoin Crash to S&P 500 Sell-Off

U.S. financial markets faced a sharp downturn on February 5 as both equities and cryptocurrencies sold off amid a broad risk-off shift by investors. Market commentator and Mad Money host Jim Cramer suggested that Bitcoin’s abrupt decline may have played a role in accelerating losses across U.S. stock indexes, particularly the S&P 500.

The Dow Jones Industrial Average dropped 592.58 points (-1.20%) to close at 48,908.72, while the S&P 500 fell 1.23% to 6,798.40, pushing the benchmark into negative territory for the year. The Nasdaq Composite declined 1.59% to 22,540.59, with losses briefly deepening further during intraday trading. Weak sentiment was compounded by earnings-related concerns after Alphabet warned of a significant ramp-up in artificial intelligence spending, projecting potential 2026 capital expenditures of up to $185 billion.

Crypto markets experienced a more severe shock. Bitcoin plunged more than 10% within 24 hours, briefly touching $63,000, marking its steepest one-day decline since the FTX-driven collapse in November 2022. The sell-off spilled into crypto-linked equities, with shares of Coinbase, Robinhood, MicroStrategy, and BitMine Immersion falling by more than 10% on average, while major mining firms such as Bitfarms, CleanSpark, and Marathon Digital posted similar losses.

Cramer argued that the scale and speed of Bitcoin’s drop may have intensified stress across risk assets, reinforcing the broader retreat in U.S. equities.

Source: X Public Statements

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