S&P 500 Hits Record Highs as Crypto Market Cap Stalls Below $3T
The S&P 500 reached new all-time highs in 2025, advancing to about 6,900 as resilient corporate earnings and policy stability sustained equity momentum. By contrast, the global crypto market capitalization remains stuck near $2.9 trillion, failing to reclaim the $3 trillion threshold. TradingView-based technicals show the S&P 500’s RSI around 59 (healthy), while the crypto market cap RSI is near 43 (cooling), indicating weaker buying pressure in digital assets. Analysts attribute the divergence to thinner crypto liquidity, subdued institutional participation and spot ETF outflows, which have capped upside for digital-assets despite occasional rallies. The split could prompt capital rotation toward equities until ETF inflows or macro catalysts revive crypto participation. Key takeaways for traders: monitor ETF flows, macro policy signals and liquidity indicators; expect higher relative stability and momentum in equities versus constrained upside and higher volatility in crypto until demand conditions improve.
Neutral
The article describes an equity-led rally alongside stagnant crypto market capitalization driven largely by liquidity and institutional flow dynamics. This environment is neutral for crypto markets: it is not outright bullish because fundamental demand and ETF inflows are weak, nor strongly bearish because prices are consolidating rather than crashing. Short-term impact: increased volatility and limited upside for crypto as traders react to ETF outflows, lower liquidity, and rotation into equities — expect choppy price action and failed breakouts near $3T. Long-term impact: if institutional flows remain muted and macro trends favour equities, crypto could underperform broader risk assets; conversely, a reversal in ETF flows or a macro catalyst (e.g., easing policy, positive regulatory clarity) could trigger a meaningful crypto rally and reduce the divergence, as seen in prior episodes where liquidity injections or big ETF inflows preceded sustained crypto gains. Traders should watch ETF flow data, exchange liquidity metrics, on-chain indicators and macro earnings/policy signals to time risk-on rotations or re-entry into crypto.