Gold, S&P, Nasdaq = ATHs 📈
Crypto = red 📉 What’s happening?
Capital is crowding into traditional, liquid assets first. In early rate-cut cycles, stocks & gold get the flows.
Crypto sits at the tail end of the liquidity chain it pumps only once risk appetite deepens.
Liquidity for crypto is still tight:
• Fed cut rates but QT continues
• Treasury draining via TGA
• $7.7T parked in money market funds
After the Sept ‘24 rate cut, $BTC jumped to $60K and ETH +20% then both dropped.
Sept ‘25 looks similar: BTC $118K → $112K, ETH $4.6K → $4.1K.
Add in $23B of quarterly BTC & ETH options expiry (max pain 110K & 3.7K) on Sept 26 = more volatility ahead.
Stablecoin supply at ATH ($308B), but most sits idle as velocity is missing. Until that rotates, crypto rallies stay capped.
