Will stocks go back up? This question is top of mind for investors and crypto enthusiasts alike, especially as global markets react to shifting macroeconomic conditions. Understanding the interplay between traditional equities and digital assets can help you make informed decisions and spot new opportunities. In this article, we break down the latest trends, expert opinions, and what it all means for your portfolio.
As of late October 2023, optimism is returning to both stock and crypto markets. According to Standard Chartered, easing U.S.-China trade tensions and expectations of a Federal Reserve rate cut have boosted sentiment. The S&P 500 continues to show strength, with analysts noting that a "risk-on" environment in equities often creates favorable conditions for crypto assets.
Crypto analyst VisionPulsed highlights a recurring pattern: when the S&P 500 rallies, small-cap indices like the Russell 2000 tend to follow, which can then trigger breakouts in major cryptocurrencies such as Ethereum and Dogecoin. This sequence has played out in previous years, with late-October bottoms giving way to November reversals. As VisionPulsed notes, "November could be repeating itself where we get a big push."
Market data supports this view. For example, Bitcoin's price action is closely watched as a barometer for broader risk appetite. As of October 28, 2023, Bitcoin held key moving average support, and institutional inflows into crypto ETFs have resumed. Meanwhile, illiquid Bitcoin supply is declining, with 62,000 BTC moving out of long-term holder wallets, according to Glassnode.
Several factors influence whether stocks will go back up:
Standard Chartered's Geoffrey Kendrick recently stated that if current positive momentum continues, "bitcoin may never go below $100,000 again." While this is a bold claim, it underscores the interconnectedness of equity and crypto markets in today's environment.
The question "will stocks go back up" is increasingly relevant for crypto investors. A strong equity market often leads to increased risk appetite, benefiting assets like Bitcoin, Ethereum, and Dogecoin. VisionPulsed's analysis suggests that a breakout in the S&P 500 and Russell 2000 could pave the way for an "altseason," where alternative cryptocurrencies outperform.
However, the setup is not guaranteed. If Bitcoin fails to hold its key moving average, the bullish scenario could unravel, leading to renewed volatility. As VisionPulsed cautions, "If we come up to the top of the channel and get stuck again, we're going to see a crash to the bottom of the channel or at least the middle." For Dogecoin, this could mean a drawdown toward $0.13 if momentum stalls, or a surge toward $0.80–$0.90 if an altseason materializes.
On the institutional side, companies like Strategy (formerly MicroStrategy) and American Bitcoin Corp. continue to accumulate Bitcoin, reflecting long-term confidence. As of October 2023, Strategy holds over 640,808 BTC, while American Bitcoin Corp. added 1,414 BTC worth over $160 million to its reserves.
Many investors assume that stocks and crypto always move in tandem, but correlations can shift quickly. It's important to:
Transparency is also critical. As Maximiliano Stochyk from CoinTerminal notes, projects with clear revenue models, public treasury wallets, and open communication tend to perform better and build trust with their communities.
Looking ahead, several events could influence whether stocks go back up:
As of October 30, 2023, Mt. Gox has postponed its creditor repayment deadline by another year, which could impact Bitcoin supply dynamics. Meanwhile, new narratives like Real World Assets (RWA), AI, and quantum computing are gaining traction in the blockchain space, offering fresh opportunities and risks for investors.
Understanding whether stocks will go back up requires monitoring both traditional and digital markets. By staying informed and using trusted platforms like Bitget, you can navigate volatility and seize new opportunities as they arise. Ready to take your research further? Explore more Bitget features and market insights today to stay ahead in the evolving world of finance.