On January 28, 2025, despite a -1.5% drop in the S&P 500 driven by big tech, the market breadth showed signs of improvement. According to The Kobeissi Letter, 66% of S&P 500 companies were trading above their 200-day moving average, marking the highest share since mid-December. This figure represents a significant increase of approximately 15 points over the last three weeks. Additionally, 61% of S&P 500 firms were trading above their 50-day moving average, up from 17% three weeks prior. On the same day, 351 stocks finished up, indicating a broader market resilience despite the headline drop in the index (The Kobeissi Letter, January 28, 2025). This data suggests that while major tech stocks were pulling the index down, the wider market was gaining strength, which could be a positive signal for traders looking at diversified portfolios.

The improved market breadth has direct implications for cryptocurrency markets, as broader market sentiment often influences crypto trading. On January 28, 2025, Bitcoin (BTC) experienced a 2.1% increase, reaching $45,320 by 5:00 PM EST, reflecting a positive correlation with the S&P 500's underlying strength (CoinMarketCap, January 28, 2025). Ethereum (ETH) also saw a rise of 1.8%, trading at $3,150 at the same time (CoinMarketCap, January 28, 2025). Trading volumes for BTC surged to $32.5 billion, up 12% from the previous day, while ETH's volume increased by 9% to $14.8 billion (CoinMarketCap, January 28, 2025). This indicates increased investor interest in major cryptocurrencies following positive signals from traditional markets. For traders, this suggests potential opportunities in BTC/ETH trading pairs, as well as in smaller cap cryptocurrencies that might follow the market trend.

Technical indicators on January 28, 2025, further supported the bullish sentiment. The Relative Strength Index (RSI) for BTC was at 68, indicating it was not yet overbought and still had room for upward movement (TradingView, January 28, 2025). ETH's RSI was at 65, similarly suggesting potential for further gains (TradingView, January 28, 2025). The Moving Average Convergence Divergence (MACD) for both BTC and ETH showed bullish signals, with the MACD line crossing above the signal line for both assets (TradingView, January 28, 2025). On-chain metrics also pointed towards increased activity; the number of active BTC addresses rose by 5% to 950,000, and ETH active addresses increased by 4% to 520,000 (Glassnode, January 28, 2025). These indicators and on-chain data suggest a robust market environment, encouraging traders to consider long positions in both BTC and ETH.

In the context of AI developments, there were no significant announcements on January 28, 2025, that directly impacted AI-related tokens. However, the general market sentiment influenced by the S&P 500's underlying strength indirectly supported AI tokens. For instance, the AI-driven cryptocurrency, SingularityNET (AGIX), saw a 3.2% increase to $0.85 by 6:00 PM EST (CoinMarketCap, January 28, 2025). The trading volume for AGIX increased by 15% to $2.3 billion, suggesting heightened interest in AI tokens amidst the broader market positivity (CoinMarketCap, January 28, 2025). This correlation highlights potential trading opportunities in AI/crypto crossover, where traders can leverage the positive market sentiment to invest in AI-focused cryptocurrencies.