Stock Market Soars Driven by Trump...Will Bitcoin Follow?

▲ Bitcoin, Stock Market/ChatGPT Generated Image ©

▲ Bitcoin, Stock Market/ChatGPT Generated Image ©

The U.S. stock market has recorded an unprecedented rally since Trump's presidential inauguration, reaching an all-time high. Consequently, the market is focusing on the possibility that Bitcoin (BTC) and Ethereum (ETH) will follow the stock market's upward trajectory.

Cryptocurrency specialized media outlet Coingape reported on April 25 (local time) that the S&P 500 index surpassed 7,000 points for the first time in history. With the start of Donald Trump's second term as U.S. President, the U.S. stock market is recording its best returns since 2001. Since President Trump's inauguration, the stock market has risen by 16%, showing explosive growth that exceeds the past average of 15%.

Despite the rosy rally in the U.S. stock market, Bitcoin and Ethereum prices remain below their all-time highs. Bitcoin has attempted a rebound, rising 16% in the past month, but is currently blocked by the $80,000 resistance level. Analysts predict that a full-fledged upward trend for Bitcoin will only be confirmed once it decisively breaks through the 150-day simple moving average of $79,000.

Ethereum has also been moving within an ascending channel over the past two months, confirming buying momentum. However, it is currently undergoing a joint correction with Bitcoin, testing the support at the bottom of the channel. The Awesome Oscillator, a technical indicator, is showing red, signaling a slight weakening of buying pressure, which warrants caution. If it breaks through the upper resistance level, there is a high probability that it will synchronize with the stock market rally and draw a strong upward curve.

The booming stock market is also positively impacting related cryptocurrency stocks. Shares of companies like Coinbase and Strategy have outperformed Bitcoin's returns, coinciding with the S&P 500's record-breaking run. Investors seem to be placing more weight on policy expectations and risk asset preference than on geopolitical uncertainties.

If Bitcoin and Ethereum overcome key resistance levels, they are expected to absorb the upward momentum generated by the stock market. Technical indicators in the virtual asset market still suggest ample room for further growth. In a situation where market dominance restructuring is accelerating, the future movements of these two leading cryptocurrencies will be a crucial turning point in determining the scale of the overall cryptocurrency market rally.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*