to leave a comment.
▲ Bitcoin, Stock Market/ChatGPT Generated Image ©
▲ Bitcoin, Stock Market/ChatGPT Generated Image ©
The US stock market has hit an all-time high, recording a historic rally since Trump's presidential inauguration. As a result, the market is focusing on the possibility of Bitcoin (BTC) and Ethereum (ETH) catching up with the stock market's upward trajectory.
Crypto-focused 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 US President, the US stock market has been 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 US stock market, Bitcoin and Ethereum prices remain below their all-time highs. Bitcoin has attempted a rebound, rising 16% in the past month, but it is currently blocked by the $80,000 resistance level. Analysts predict that a full-fledged uptrend for Bitcoin will only be confirmed once it definitively 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 pressure. However, it is currently undergoing a joint correction with Bitcoin, testing the support at the bottom of the channel. The technical indicator, the Awesome Oscillator, is showing red, signaling a slight weakening of buying momentum, which warrants caution. If it breaks through the upper resistance level, it is highly likely to 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, aligning with the S&P 500 index's record-high streak. Investors appear to be placing more weight on policy expectations and risk asset preference than on geopolitical uncertainties.
If Bitcoin and Ethereum surpass key resistance levels, they are expected to absorb the upward momentum generated by the stock market. Technical indicators for the virtual asset market still suggest ample room for further growth. In a situation where market dominance restructuring is accelerating, the future trajectory of these two major cryptocurrencies will be a critical 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.*
Newsletter
Get key news delivered to your email every morning
to leave a comment.