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▲ Bitcoin (BTC)/AI generated image
Bitcoin (BTC) is hovering at a level 40% lower than its all-time high. Meanwhile, the S&P 500 index in the U.S. stock market has broken its all-time high, gaining momentum.
According to crypto media outlet CryptoPotato on April 17 (local time), Bitcoin has been marginalized amidst the festive atmosphere of traditional financial markets. While the S&P 500 index set new records fueled by strong corporate earnings, the digital asset market lost its vitality. Bitcoin remains stuck in a deep slump compared to its previous high of around $69,000.
The flow of funds is clear. Investors have chosen stable blue-chip stocks instead of volatile coins. As the timing of interest rate cuts became shrouded in uncertainty, a clear aversion to risk assets emerged. Bitcoin has been trapped in a narrow trading range for the past few weeks. Even trading volume has hit rock bottom, appearing to lose momentum.
The absence of a catalyst is also painful. The effect of spot ETF approval is already waning. The market continued its wait-and-see stance, unable to find materials to drive the next rally. In contrast, the tech-heavy New York stock market has been on fire day after day. The market's sober assessment is that 'Bitcoin desperately needs its own positive news to catch up with the stock market rally.'
The movements of big players have also slowed down. Long-term holders did not dump their holdings despite price drops, but they were also reluctant to make additional purchases. This is a result of focusing on risk management, solely watching changes in macroeconomic indicators and the words of Federal Reserve (Fed) Chairman Jerome Powell. A wait-and-see approach dominated the market more than aggressive betting.
The divergent paths of Bitcoin and the S&P 500 fully reveal the complex inner workings of the financial market. To narrow the 40% gap, strong liquidity provision must be supported. The market stands at a crossroads: will the warmth of the stock market spread to the crypto market, or will the gap widen further? Investors' attention is now focused on signs of a stock market peak and the timing of a crypto rebound.
*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.*
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