How to Read Crypto Dips While S&P 500 Surges: 5 Signals to Watch

While the S&P 500 just surged 3.26%, the crypto market dipped, with BTC down 1% and altcoins like ETH, BNB, DOGE falling 2–10%. The question on every trader’s mind: Why is crypto lagging while U.S. stocks flash a bull market?

The S&P 500 has gained over 1,000 points in a month, officially entering a new bull market—up 20% from April lows. But crypto didn’t follow. Why? Timing. Institutional money and trader sentiment haven’t fully caught up yet.

Analytics from Santiment suggest crypto could play catch-up soon. Trading volumes are rising—often a precursor to rallies. It’s just that crypto responds differently to macro catalysts.

Glassnode data shows First-Time Buyer RSI at 100—clear interest remains. But Momentum Buyers are cooling off (RSI ~11), and profit-taking is increasing, hinting at a brief consolidation phase for BTC.

ETH’s rally from $1,800 to $2,500 stalled near $2,580, where 1.3M ETH had been held. That supply has dropped to 1M, confirming that many traders exited near breakeven. Expect sideways action unless inflows rise.

Despite the dip, digital asset funds saw $882M in inflows last week. That’s 4 weeks of positive growth, bringing year-to-date crypto inflows to $6.7B—with BTC accounting for $867M.

While stocks roar ahead, crypto is pausing—but not out. Rising volumes, bullish fund inflows, and macro optimism hint at a potential rebound. For now, patience is key.

#BTC #ETH