U.S. Stock Market Hits Record Highs Amid Crypto Market Decline

The U.S. stock market continues to achieve record-breaking highs, propelled by advancements in the technology sector, while digital assets like Bitcoin (BTC) and Ethereum (ETH) experience persistent selling pressure. Analysts attribute the contrasting trends to capital shifting from cryptocurrencies to equities, spurred by the strong performance of tech stocks.

As of 8:30 a.m. KST on November 29, Bitcoin was priced at 168.27 million KRW on Upbit, reflecting a 0.42% drop from the previous day. On Binance, BTC fell 0.97% to $113,029. Ethereum saw a sharper decline, trading at $3,982, representing a 3.25% drop, while XRP slid 1.06% to $2.61.

Market data from Coinglass highlights significant liquidation activity in the last 24 hours, with approximately $128.89 million (184.8 billion KRW) worth of Bitcoin positions being liquidated. Of these positions, 75.01% were long bets. Across the broader cryptocurrency market, total liquidations amounted to $558.58 million (801.2 billion KRW), underscoring the current volatility.

Tech-Fueled Momentum Driving U.S. Stock Market

In contrast to the crypto market's struggles, the U.S. stock market continues its ascent, buoyed by optimism surrounding artificial intelligence (AI) and innovation from tech giants like Nvidia. The major stock indices closed at new all-time highs, a testament to investor confidence in the sector.

• Dow Jones Industrial Average: Up 0.34%, reaching 47,706.37.
• S&P 500 Index: Gained 0.23%, closing at 6,890.89.
• Nasdaq Composite: Surged 0.80%, ending at 23,827.49.

Nvidia emerged as a key driver in the rally, posting a nearly 5% gain after CEO Jensen Huang revealed new AI partnerships during the AI Summit in Washington, D.C. Huang also dismissed concerns of an "AI bubble," expressing optimism about the long-term potential of the field.

Further fueling bullish sentiment in equities was speculation regarding a possible Federal Reserve interest rate cut, which could be announced as early as Wednesday. This dovetailing optimism even led some investors to speculate about the Fed potentially ending its quantitative tightening (QT) policies this month.

Brett Kenwell, an analyst at eToro, commented, “The resilience of major tech stocks underscores Wall Street's faith in the AI narrative. As long as enthusiasm around innovation and technology persists, investment in these companies will remain strong.”

Crypto Continues to Struggle Amid Equity Strength

The thriving U.S. stock market has added pressure to the faltering cryptocurrency sector as capital shifts toward equities. Alongside declines in flagship cryptocurrencies, publicly traded companies tied to the crypto market have also seen sharp sell-offs.

Several mining firms, including Bitfarms, CleanSpark, Hive, and IRen, experienced a 4–5% dip in their stock prices. Galaxy Digital dropped by 8%, following its announcement of a $1.15 billion (approximately 1.6 trillion KRW) capital expansion initiative. MicroStrategy also closed the trading session down 3.7%.

A report by Bitfinex warned that, while Bitcoin showed signs of recovery following its steep early-November tumble, the correction phase might not yet be over. The analysis emphasized Bitcoin’s need to maintain levels above $113,600—the average purchase price for short-term holders—to sustain upward momentum. Failure to uphold this benchmark could lead to further declines, potentially hitting lows of $97,500. This uncertainty has kept participants wary, particularly with Bitcoin currently trading below the critical threshold.

Softened Investor Sentiment Causes Concern

Investor sentiment across the cryptocurrency market remains fragile. The Alternative Fear & Greed Index dropped to 50 (neutral) from 52 the previous day. The index, which evaluates market sentiment on a scale from 0 to 100, highlights ongoing caution among investors. A lower score signifies stronger selling pressures, while higher values indicate increased buying enthusiasm.

As U.S. equities continue to post record highs, the crypto market faces mounting instability, complicating efforts to regain traction. Concern persists among traders about the potential for further declines in the coming days, particularly amidst waning enthusiasm and diminished support levels for leading digital assets.

This divergence in market dynamics underscores the growing influence of technological advancements in driving equity markets, while the crypto sector struggles to weather current challenges. Investors are increasingly compelled to evaluate their portfolios in light of the shifting landscape, balancing opportunities in innovation-led equities against the risks posed by digital asset volatility.