S&P 500 hits record high while crypto stalls below $3T as momentum diverges
The S&P 500 climbed to an all-time high of 6,900 this week, extending a months-long rally that has pushed U.S. equities to fresh records. But crypto markets couldn’t join the party: the total crypto market capitalization remains stuck below the $3 trillion mark, trading around $2.9 trillion after multiple failed attempts to reclaim the zone in December.
TradingView charts show a widening gap between the two markets. Equities are accelerating on stronger fundamentals and growing risk appetite, while crypto sits in a low-momentum, low-liquidity environment with muted participation.
What’s driving equities
- The S&P’s rise has been steady since Q2, supported by resilient corporate earnings, improving macro data, and a rotation into risk assets as investors price in policy stability heading into 2026.
- Momentum readings back the move: the index’s RSI sits near 59, signaling healthy strength without clear signs of overheating, and volume trends confirm continued buy-side interest. (Source: TradingView)
Where crypto stands
- The global crypto market cap has traded sideways for weeks around $2.9T. Momentum has cooled: the market’s RSI is roughly 43, reflecting limited demand even after an early-December bounce. (Source: TradingView)
- Market structure looks fragile — repeated breakouts above $3T have stalled, liquidity is thinner than earlier in the year, and major spot ETF flows have seen outflows. Several analytics firms have flagged declining institutional participation as a contributing factor.
Why the divergence matters
From 2023 through 2025, crypto and equities often moved together as broader macro liquidity improved and capital rotated across asset classes. The current split is notable because it shows traditional markets breaking out while digital assets consolidate. That suggests crypto is still adjusting to a tighter liquidity regime even as equities benefit from stronger macro signals and a more favorable narrative.
What could change the picture for crypto
- A reversal in ETF flows (net inflows into spot crypto products)
- A sustained return of market liquidity and wider participation
- A broader risk-on rotation that funnels capital back into digital assets
Without one or more of those shifts, crypto may continue to lag its TradFi counterparts in the near term.
Disclaimer: AMBCrypto’s content is informational and not investment advice. Trading, buying, or selling cryptocurrencies is high risk — do your own research before making decisions. © 2025 AMBCrypto
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