According to The Kobeissi Letter, the S&P 500 has officially turned positive for the year, recording a gain of over 1,000 points since its April low (source: The Kobeissi Letter on Twitter, May 13, 2025). This robust rally in traditional equities is fueling increased risk appetite, often seen as a bullish signal for the cryptocurrency market. Historically, positive momentum in the S&P 500 has correlated with increased inflows into major cryptocurrencies like Bitcoin and Ethereum, as investors seek higher returns in alternative assets. Traders should monitor the spillover effect from equities to crypto, especially given current market sentiment and rising institutional interest.

According to Milk Road, the market did not explode because the momentum from the earlier 90-day tariff pause had already been priced in. This led to equities rallying, bond yields adjusting sharply, and cryptocurrencies pushing higher. The anticipation of these changes resulted in a preemptive market adjustment, leaving little room for further explosive growth. [source: Milk Road]