Welcome to US Crypto News Morning Briefing. A critical overview of the most important developments in cryptocurrencies of the day.
Grab a coffee while the market buzzes with mixed signals. Wall Street luminaries are warning that stocks appear to be stagnant, while Bitcoin’s momentum against major indexes is waning, leaving investors wondering if a quiet reset has already begun.
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Today’s Crypto News: Wall Street Sees “Full, Not Cheap” Valuations As 10-15% Correction Approaches
Wall Street giants are sounding the alarm about the market overheating. Goldman Sachs’ David Solomon, Morgan Stanley’s Ted Pick and Citadel’s Ken Griffin all predict a 10% to 15% stock price correction over the next 12 to 24 months, Bloomberg reported. In their opinion, this would be a “healthy” correction after a long rally.
Mike Gitlin, CEO of Capital Group, echoed similar sentiments, saying that while corporate earnings remain strong, valuations are in the realm of “good enough, not cheap.”
“The difficult thing is valuation,” he said at the Hong Kong Financial Summit hosted by the Hong Kong Financial Authority.
Gitlin noted that the S&P 500 index currently trades at 23 times forward earnings, well above the five-year average of 20 times. He said this shows that risk premiums are compressing despite lingering policy uncertainty.
Gitlin added that most investors would agree that the market is “somewhere between fair and full,” but few would say it’s “somewhere between undervalued and fair.” Credit spreads show a similar pattern, with pricing strength but little buffering against shocks.
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Cryptocurrencies reflect macro: Bitcoin falls against S&P 500
Wall Street’s caution is also being felt in the crypto market, with Bitcoin’s relative weakness against the S&P 500 (BTC/SPX) compared to previous late-cycle movements.
Crypto analyst Brett noted that BTC/SPX has had three consecutive candlesticks below the 50-week simple moving average, a level that has historically supported the asset during bull markets.
“Last cycle, Bitcoin started to show weakness against SPX near the end of the cycle,” he said, warning that losing this level could portend a broader risk-off rotation.
Brett also observed that over the past three cycles when Bitcoin peaked, the S&P 500 entered an extended chop phase of 750 to 850 days, often retesting the pre-peak price before resuming the uptrend. If history repeats itself, the stock market may be nearing a similar inflection point.
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Meanwhile, Bitwise CEO Hunter Horsley has suggested that expectations for a 2026 bear market may already have “front-loaded” much of the downside risk.
“What if we actually had a bear market for most of this year? Something even crazier is happening. The market is changing,” he posed.
With stock markets hitting record valuations and Bitcoin’s momentum wavering against traditional indexes, both markets appear to be moving closer to price normalization rather than collapse.
Based on top CEO forecasts, the tone on Wall Street is cautious but not panicky. This suggests that while risk appetite remains high, investors may soon favor fundamentals over euphoria.
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Here’s a rundown of US crypto news to follow today.
