Last week, the U.S. stock market had an impressive performance, with both the S&P 500 and the Nasdaq Composite hitting record highs.

However, while cryptocurrency markets are generally viewed as risky assets that tend to underperform during times of economic uncertainty, the recent strong gains in the stock market stand in stark contrast to the sharp sell-off in cryptocurrencies.

Strong gains in US stocks

Perhaps driven by the hype of Nvidia, the U.S. stock market has been in a massive bull market since the beginning of the year, especially the S&P 500 index, which was below 4,800 points at the beginning of the year and soared to about 5,500 points earlier this week, setting a new record. At the same time, the performance of the Nasdaq Composite Index is even more eye-catching, with an increase of 19.8% since the beginning of the year and a new high of nearly 18,000 points this week.

However, the Dow Jones Industrial Average, which has little to do with the technology sector, has performed slightly worse, with an annual gain of less than 4%. Even so, it hit an all-time high of about 40,000 points earlier this year.

At the same time, the cryptocurrency market, which is a risky asset, has suffered a heavy blow.


BTC and ETH market performance suffers

At the beginning of this year, the market performance of Bitcoin (BTC) was initially quite strong, mainly due to the approval of the spot BTC ETF in the United States in January. Although Bitcoin's fourth halving event is generally regarded as a catalyst for the bull market, its price performance has not met expectations since the halving, but has continued to fall. $BTC

Meanwhile, Ethereum (ETH) has also received regulatory approval from the U.S. Securities and Exchange Commission (SEC), which approved an Ethereum spot ETF last month. However, while the news should have been a big positive for the market, the price of ETH has almost given up all the gains brought about by the good news as these ETFs have not yet been officially launched. $ETH

Market data shows that both BTC and ETH have experienced a decline of about 10% since their annual peak, which is a clear decoupling from the strong performance of the U.S. stock market.

However, it is worth noting that despite the recent declines, BTC and ETH have still seen considerable gains since the beginning of 2024 compared to the aforementioned stock market indices, achieving profitable growth of 50% and 54% respectively.

This phenomenon shows that despite the short-term challenges facing the cryptocurrency market, its long-term growth potential and appeal remain. #股市新高 #加密货币脱钩 #BTC #ETH

Conclusion

The recent strong performance of the U.S. stock market stands in stark contrast to the relative sluggishness of the cryptocurrency market. While stock market indices such as the S&P 500 and the Nasdaq Composite have hit new highs, Bitcoin and Ethereum have faced challenges due to changes in market dynamics and the regulatory environment. However, this has not diminished the strong growth they have demonstrated since the beginning of the year, achieving gains of 50% and 54% respectively, showing that the cryptocurrency market still has potential and appeal that cannot be ignored.

Investors should remain vigilant in the face of market volatility, but should also recognize the long-term value of cryptocurrencies as an emerging asset class. With the continuous advancement of technology and the gradual maturity of the market, cryptocurrencies are expected to show greater innovation potential and market opportunities in the future. Market participants should pay close attention to developments in this field in order to capture emerging trends and make wise investment decisions.