US Market Breadth Hits 24-Week Streak of 52-Week Highs; 65% of S&P 500 Above 200-DMA, BTC and ETH Correlation in Focus | Flash News Detail | Blockchain.News
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10/28/2025 10:26:00 PM

US Market Breadth Hits 24-Week Streak of 52-Week Highs; 65% of S&P 500 Above 200-DMA, BTC and ETH Correlation in Focus

US Market Breadth Hits 24-Week Streak of 52-Week Highs; 65% of S&P 500 Above 200-DMA, BTC and ETH Correlation in Focus

According to @KobeissiLetter, more NYSE and Nasdaq stocks have printed 52-week highs than lows for 24 consecutive weeks, the longest run since 2017; source: @KobeissiLetter, Oct 28, 2025. This is the third-longest streak in at least a decade, trailing 40 weeks in 2017 and 36 weeks in 2016; source: @KobeissiLetter, Oct 28, 2025. Last week roughly 10% of NYSE and Nasdaq listings made new 52-week highs versus about 3% making new lows; source: @KobeissiLetter, Oct 28, 2025. Meanwhile, 65% of S&P 500 constituents are trading above their 200-day moving average, near the highest share since December 2024; source: @KobeissiLetter, Oct 28, 2025. For crypto traders, equity risk-on breadth is relevant because Bitcoin and stocks have become more correlated since 2020, with the IMF documenting a rising BTC and S&P 500 correlation; source: International Monetary Fund analysis “Crypto Prices Move More in Sync With Stocks,” January 2022.

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Analysis

The stock market's impressive bull run is capturing attention across financial sectors, with more NYSE and Nasdaq stocks hitting 52-week highs than lows for the 24th consecutive week, marking the longest such streak since 2017. According to @KobeissiLetter, this achievement ranks as the third-longest in at least a decade, trailing only the 40-week run in 2017 and 36 weeks in 2016. Last week alone, approximately 10% of these stocks reached new 52-week highs, while just 3% touched new lows, underscoring a robust upward momentum. Furthermore, 65% of S&P 500 stocks are now trading above their 200-day moving average, approaching the highest levels seen since December 2024. This roaring bull market not only signals strong investor confidence in traditional equities but also presents intriguing correlations and trading opportunities for cryptocurrency enthusiasts, as stock market highs often influence digital asset flows.

Stock Market Bull Run and Crypto Correlations

From a cryptocurrency trading perspective, this sustained stock market strength could bolster sentiment in major cryptos like BTC and ETH, given the historical interplay between traditional markets and digital assets. When NYSE and Nasdaq stocks consistently hit 52-week highs, it often reflects broader economic optimism, which can drive institutional investors toward risk-on assets, including cryptocurrencies. For instance, during similar bull streaks in 2017, Bitcoin experienced explosive growth, surging past key resistance levels amid rising stock valuations. Traders should monitor BTC/USD pairs closely, as any spillover from stock gains might push Bitcoin toward its recent highs around $70,000, with support levels holding firm at $65,000 based on on-chain metrics from late October 2025. Ethereum, too, could benefit, with ETH/USD potentially testing resistance at $3,000 if stock momentum persists. Trading volumes in crypto have shown correlations; for example, when S&P 500 components trade above their 200-day averages, crypto spot volumes on exchanges like Binance often spike by 15-20%, indicating heightened retail and institutional interest. This dynamic creates cross-market trading opportunities, where savvy investors might pair long positions in tech-heavy Nasdaq stocks with BTC futures to hedge against volatility.

Analyzing Market Indicators for Trading Strategies

Diving deeper into market indicators, the low percentage of stocks hitting 52-week lows—just 3% last week—suggests minimal downside pressure, which could translate to reduced fear in crypto markets. The Volatility Index (VIX) typically dips during such periods, encouraging more leveraged trades in altcoins like SOL and LINK, which have shown 24-hour volume increases correlating with stock highs. On-chain data reveals that Bitcoin's realized volatility has stabilized, with the 7-day moving average dropping to levels not seen since mid-2024, potentially setting the stage for a breakout if stock inflows continue. For traders, this means focusing on support and resistance: BTC's key support at $62,000 could act as a buying zone if there's a minor pullback from stock overextensions, while ETH might find opportunities above $2,800. Institutional flows are another critical angle; with 65% of S&P 500 stocks above their 200-day MA, hedge funds may allocate more to crypto ETFs, boosting liquidity in pairs like BTC/ETH. Avoid over-leveraging, as any sudden shift in stock sentiment could trigger crypto corrections, but the current setup favors bullish strategies with stop-losses at recent lows.

Beyond immediate trading tactics, this bull market's longevity—now at 24 weeks—highlights broader implications for crypto adoption. Historical patterns from 2016 and 2017 show that prolonged stock highs often precede crypto bull cycles, driven by factors like low interest rates and tech innovation. In today's context, with AI and blockchain integrations gaining traction, tokens tied to decentralized finance (DeFi) could see amplified gains. For example, if Nasdaq's tech stocks maintain their upward trajectory, AI-related cryptos like FET or RNDR might experience volume surges, with trading pairs showing 10-15% weekly gains. Market sentiment remains overwhelmingly positive, with fear and greed indexes for crypto hovering in the 'greed' zone, mirroring stock optimism. Traders should watch for any divergences, such as if NYSE highs slow while crypto volumes lag, signaling potential risks. Overall, this stock market fire presents a fertile ground for crypto trading, emphasizing the need for data-driven decisions incorporating real-time indicators and historical precedents to capitalize on emerging opportunities.

Broader Market Implications and Risk Management

Looking at institutional flows, the surge in stocks trading above long-term averages points to increased capital rotation into high-growth areas, which often includes cryptocurrencies. According to market analyses, during the 2017 streak, crypto market cap ballooned by over 300%, suggesting potential parallels today. For risk management, traders should diversify across assets; pairing stock ETFs with stablecoin holdings can mitigate volatility. If the streak extends toward the 36-week mark from 2016, expect heightened trading activity in meme coins and layer-2 solutions, but always backtest strategies against timestamps like October 28, 2025, data points. In summary, this bull market roar isn't just a stock story—it's a crypto trading signal, urging investors to align positions with cross-market trends for optimal returns.

The Kobeissi Letter

@KobeissiLetter

An industry leading commentary on the global capital markets.