Stocks, Bitcoin, and gold are close to their ATHs, is an optimistic breakout forming?

The global digital asset market saw a slight increase on Sunday morning, reaching a market capitalization of $3.31 trillion. This comes after a week of fluctuations. The increase in Bitcoin dominance has somewhat pressured altcoins to perform, as retail investors are still absent. However, the stock and crypto markets remained almost correlated.

The 90-day tariff pause between the US and China is keeping the markets close to their historical highs.

Meanwhile, Moody's made a shocking downgrade in the US credit rating from Aaa to Aa1. It cited rising deficits and a growing debt burden.

S&P, BTC, gold near ATHs

According to the data, the S&P 500 is currently trading at a price of $5,958, after hitting its all-time high of $6,147 on February 19, 2025. It is only 3.27% away from its ATH.

Gold is also trading at around $3,200 per ounce, after recording its ATH of $3,509 on April 22, 2025. The precious metal is only 9% away from reaching its new ATH.

A report from Goldman Sachs stated that investors have been increasing their holdings in gold since March. This has been driven by economic uncertainty, geopolitical risk, and a surprising increase in demand from central banks. But not all movements have made sense to investors.

The recent 5% drop in gold prices, which reflects a drop in stocks, puzzled some investors. The analyst suggests that gold's status as a safe-haven asset has not disappeared. As stocks fell, investors sold gold to raise cash as collateral, not because they lost faith in it.

On the traditional market side, an optimistic sentiment is spreading among investors. Nearly 36% of individual investors indicated an optimistic sentiment toward the market.