New York Stock Market Soars to All-Time Highs… Why is the Cryptocurrency Market Stagnant?

▲ New York Stock Exchange (NYSE)

Despite strong macroeconomic tailwinds such as signs of easing geopolitical tensions in the Middle East and an unprecedented tech stock rally in the New York stock market, major virtual assets, including the leading cryptocurrency Bitcoin (BTC) and XRP (Ripple), continue to cautiously observe the market without finding a clear direction.

According to cryptocurrency market data aggregator CoinMarketCap on April 25 (local time), the global virtual asset market capitalization recorded $2.6 trillion, a mere 0.03% increase from the previous day, remaining firmly in a narrow range. Bitcoin, the leading cryptocurrency, is trading at $77,635.35, down 0.45% from 24 hours ago, while Ethereum (ETH), the leading altcoin, is also down 0.36% at $2,317.80. XRP fell by 0.32% to $1.43, while Solana (SOL) rose by 0.89% to $86.59, showing overall mixed trends with extremely limited price volatility. The Fear & Greed Index, which indicates market investor sentiment, is at 44, pointing to a neutral phase.

This extreme cautiousness in the crypto market is interpreted as a result of capital temporarily flowing strongly into the stock market, especially the artificial intelligence and semiconductor sectors. Overnight in the New York stock market, expectations for a second round of peace talks between the US and Iran emerged, and Intel announced better-than-expected earnings, leading the tech-heavy Nasdaq Composite Index and the S&P 500 Index to once again break all-time highs. Following news of an extended ceasefire between Israel and Lebanon, and speculation that high-ranking officials from both countries would meet in Islamabad, international oil prices also found stability with a downward trend.

Typically, when macroeconomic uncertainties are resolved and risk appetite revives, the virtual asset market also stages a parallel rally, but this time the atmosphere is quite different. As the stock market showed overwhelming returns, with Nvidia surpassing a market capitalization of $5 trillion and the Philadelphia Semiconductor Index rising for 18 consecutive trading days, liquidity that would normally flow into the crypto market was instead heavily drawn into the New York stock market. This is why a clear buying trend is absent despite a favorable environment for the crypto market created by the simultaneous decline in the dollar's value and US Treasury yields.

Experts predict that the sluggish sideways trend in the virtual asset market could continue until the Federal Open Market Committee (FOMC) regular meeting scheduled for next week. While the US Department of Justice's investigation into Federal Reserve Chairman Jerome Powell has concluded, removing uncertainty surrounding a potential leadership change, investors are reluctant to actively build positions until they confirm clear clues about the timing of immediate interest rate cuts. In the short term, a key observation point is whether the capital that has flowed into New York's tech stocks will rotate back into the crypto market after profit-taking.

*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.*