This week has started with renewed momentum across worldwide markets, with prominent U.S. indices posting exclusive all-time highs (ATHs). According to data from Rekt Fencer, the S&P 500 witnessed another record close on Monday, while the Nasdaq also jumped to a unique ATH. The Russell 2000 has also become part of this rally, denoting a new landmark in the wider equity sector.
In stark contrast, Bitcoin ($BTC) is still standing 60% below its latest ATH, raising concerns over whether the crypto landscape will see a rally this year. The data discloses that the S&P 500 has surged by 0.1%, whereas the Nasdaq jumped by 0.2%, reaching interday highs. Contrarily, the Dow Jones Industrial Average slumped by 62 points, underscoring a modest 0.1% dip.
Irrespective of U.S.-Iran peace discussions and President Trump's decision to discard plans to send delegates to Pakistan, equities kept moving upward. Simultaneously, oil prices presented a sharp reaction to the broader geopolitical standoff. Brent Crude spiked 2.75% to reach $108.23, while WTI Crude saw a 2.09% rise to $96.37.
BTC Switches to High Correlation with Nasdaq
BTC is once again behaving as a tech stock with a risk-on trading mode. In the past month, BTC closely tracked the Nasdaq 100 with an almost perfect correlation, and the coming week may see BTC affected by Q1 reports of leading tech companies. The earnings season may stretch up to May 20, when Nvidia will announce its earnings.
In the first quarter of 2025, BTC broke down the narrative that it behaves as digital gold, instead sharply reacting to geopolitical uncertainty and mostly siding with the stock market. As of April 28, BTC traded at $76,747.43 after rejecting the $79,000 resistance level. The coming week may attempt to revive the asset and push the price closer to the $80,000 range.
BTC Struggles Through a Difficult Q1
BTC was down by over 22% in Q1, still pressured by the liquidation crash in late 2025. The first quarter of 2026 was unique in Bitcoin’s history, as the leading asset closed both January and February in the red for the first time in its trading history. Most of Q1 for BTC was spent in the 'extreme fear' zone, and the asset still trades with a fearful sentiment, with the index recovering to around 33 points - still indicating fear.
Despite this, BTC still saw accumulation from whales and near-peak buying from Strategy and other treasury companies. However, crypto as a whole retains a relatively subdued sentiment until new liquidity finds its way into BTC. In the short term, BTC price moves are still set up by the derivatives market, with the recent liquidation heatmap showing BTC was easily swayed to liquidate long positions or have a short-term rally due to a short squeeze.
