Crypto Selloff Seen as Temporary Amid Stock Rally
The market shows a growing disconnect as the S&P 500 hits record highs while Bitcoin stalls below $112,000. Despite the current crypto selloff, strong US economic indicators—3.3% GDP growth and 1.6% consumer spending—coupled with historical patterns where 75% of stocks reach key technical levels often precede 12 months of gains, suggest that this crypto selloff is a brief pause. Traders should view the downturn as a buying opportunity ahead of a renewed bull run.
Bullish
Although Bitcoin lags behind the S&P 500’s record highs, the article argues that strong US GDP growth, elevated consumer spending, and historical precedents point to a sustained bull market for risk assets. Since 1953, when 75% of stocks hit key technical levels, the S&P has delivered significant 12-month gains, suggesting that the current crypto selloff represents a temporary correction rather than a trend reversal. Traders are likely to interpret these indicators as a signal to accumulate on dips. In the short term, this view may boost buying momentum around key support levels near $110,000. Over the longer term, continued economic strength and market correlation increases the probability of new crypto highs alongside equities.