US Stock Market Shatters Records as Bitcoin Plunges Below $110K - What’s Driving the Divergence?

Wall Street's bull run accelerates while crypto faces brutal selloff

Market Mechanics Exposed

The S&P 500 notches another record high as traditional investors pile into mega-cap tech stocks. Meanwhile, Bitcoin gets hammered below the $110K threshold—a level many analysts considered untouchable just months ago. The divergence highlights the ongoing tension between institutional adoption and crypto's inherent volatility.

Risk-On vs Risk-Off

Traders rotate out of digital assets into traditional equities, seeking stability amid regulatory uncertainty. The move exposes crypto's still-fragile foundation compared to established markets. Wall Street's gambling with house money while crypto traders face margin calls—some things never change in finance.

Digital assets face reality check as traditional markets soar

As Wall Street cheers historic highs and the S&P 500 touches new records, it closed above 6,500 points for the first time. While stocks have soared, Bitcoin (BTC) plunged to $109,850 today after hitting $124,000 last month. Meanwhile, ETH, XRP, and other cryptocurrencies are struggling to recover.

For many traders and market observers, this isn’t just another correction; it’s a familiar cycle some are calling “the cartel’s liquidation playbook.”

Market Manipulation in Focus

Crypto trader Ash Crypto warns that big exchanges and powerful trading groups may be triggering sharp price drops to “shake out” Leveraged positions. This strategy forces both high and low-leverage traders to sell. 

This is to create fear and push retail investors out of the market, while whales quietly accumulate before the next big rally.

He points to Ethereum’s past crash as an example. When ETH fell to $1,385, many thought the rally was over. Yet, just four months later, it surged about 3.5x to a new all-time high NEAR $4,950.

Now, the same pattern unfolds across the altcoin sector. DEEP corrections spark headlines and social media panic, but savvy investors recognize this as part of the “accumulation phase.”

• Also Read :
•   “Bitcoin Takes $1 Million,” Says Eric Trump at Bitcoin Asia conference
•   ,

Why Q4 Could Be Epic

The macroeconomic backdrop adds fuel to the fire. With two to three rate cuts expected in the coming months, global liquidity is set to flood back into risk assets, including crypto. 

If that happens, he believes capital could flow back into crypto quickly, lifting Bitcoin, Ethereum, and major altcoins. He repeats the same advice: “Don’t get shaken out.”

Historically, the cryptocurrency market tends to turn bullish in Q4. According to Coinglass data, in 6 out of 10 years, Q4 has delivered positive returns, with an average gain of around 23%.

One key reason for this trend is that when Q3 ends on a green note, Q4 often sees massive rallies. For example, during 2017, 2020, and 2021, Q4 delivered gains of nearly 3x following strong Q3 performances.

Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.