Record highs in equities typically signal broad-based risk appetite. Investors stepping up equity exposure often rotate into other risk assets—including Bitcoin and altcoins—when they're confident the economy won't crack.
Equity records don't always help Bitcoin if real yields (the Fed funds rate minus inflation expectations) stay elevated. The manufacturing surprise cooled near-term rate-cut bets, keeping the carry-trade headwind intact for non-yielding assets.
The S&P 500 posted its third straight weekly gain through August 13, despite a minor close-lower print on that day. The momentum shows that big-cap growth and defensive positioning are both in demand—a sign of broad-based optimism, not momentum-chasing.
If the rally persists into earnings season and inflation data remains benign, equities and crypto could extend together. If forward guidance deteriorates or inflation surprises higher, both get pressured—risk-off swings don't spare either asset class.
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