The S&P 500 index has successfully erased its losses for the month, driven by a strong rally in technology stocks and a surprising correlation with digital asset markets. Investors are reacting positively to recent inflation data which suggests the Federal Reserve may pivot sooner than anticipated.
Leading the charge, tech giants saw a collective surge, pushing the index above the critical 4,500 resistance level. This movement aligns with a broader risk-on sentiment that has swept across global financial markets this week.
Meanwhile, in the crypto sector, Bitcoin (BTC) has mirrored this optimism. Analysts at GMX note that on-chain volume has increased by 35% over the last 24 hours, indicating renewed institutional interest.
"We are seeing a decoupling from traditional bearish indicators. The liquidity flow into risk assets is palpable and sustained."
Looking ahead, market participants will be closely watching the upcoming CPI report. A favorable reading could solidify these gains and propel both equities and major cryptocurrencies to new quarterly highs. The $44,000 mark remains a key psychological barrier for Bitcoin in the short term.