Global equity indices including the Dow Jones Industrial Average, Nasdaq Composite and India’s BSE Sensex dropped amid heightened geopolitical tensions and rising inflation, while Bitcoin (BTC) and Ethereum (ETH) surged. The divergence highlights a notable shift in risk sentiment, with crypto moving against the broader equity selloff rather than following it.
On August 18, 2026, major equity markets in the U.S. and India moved lower in recent sessions, reflecting a shared cautious tone. India’s Sensex closed down 492.70 points, or 0.63%, at 77,235.46. The NSE Nifty 50 fell 132.75 points, or 0.55%, to 24,154.90, marking its sixth consecutive losing session.
In the US, Wall Street remains under pressure, with the Dow Jones down 272.63 points, or 0.51%, at 53,459.78. The S&P 500 fell 0.52% to 7,745.06, while the Nasdaq slipped 0.32% to 26,644.91. Pre-market futures continue to point lower, with Nasdaq contracts showing the sharpest declines.
Indian markets closed at the day’s lows, after a sixth consecutive day of declines, as the Sensex and Nifty fell. Increased geopolitical friction and higher crude oil prices, which exceeded $91 per barrel, weighed on sentiment. The key pressure was the continued rise in oil prices, which saw Brent crude trading close to $91 per barrel.
Meanwhile, the surge followed the expiration of the temporary Iran-U.S. ceasefire, and other factors such as rising U.S. bond yields and the IT sector. The multi-day slide and closing near session lows are clear signs of a fading risk appetite from Indian investors.
US equities started the week on a weaker note as the Dow Jones, Nasdaq and S&P 500 declined, with pre-market futures pointing to further losses. The main driver remains high crude oil prices. This has reignited inflation concerns and pushed US Treasury yields higher, with the 30-year yield reaching its highest level since 2007 and the 10-year yield approaching multi-month peaks. Wall Street’s sentiment is fairly similar to the cautious tone prevalent in Indian equities.
The crypto market has been relatively resilient, with a total market cap of about $2.2-$2.28T. BTC held near $64,200–$64,350 after a roughly 2.6% rebound above $64,000. ETH traded around $1,900–$1,910 and Solana near $76. This suggests that crypto is not aligned with the equity risk-off rally and is demonstrating some resilience to traditional market weakness.
Traditional stocks have exhibited clear weakness, with the Sensex, Nifty, Dow Jones, S&P 500, and Nasdaq all falling as BTC rallied. The short-term divergence is evident and pronounced, suggesting that crypto is not tracking the equity risk-off, while the weakness in altcoins points to caution. BTC remains in a multi-week $62,000–$66,000 range, with $63,800–$64,000 as key support and $64,700–$65,000 as near-term resistance. A move above $65,000 could boost upside pressure, whereas a move below $62,600 would indicate renewed downside pressure.
The overall market picture for current Indian crypto investors is slightly bullish as BTC holds above $64,000, and stocks remain under pressure due to high crude oil prices and rising yields. Cooling in crude, easing in U.S.-Iran tensions or a high in Treasury yields could bolster crypto’s structure, and more oil rallies, while more oil rallies, geopolitical escalation, or yields rising could weaken it. Crypto investors should watch Dow, Nasdaq, Sensex, crude prices, US bond yields and BTC’s $64k support and $65k resistance levels. The key question is whether the broader risk environment strengthens or weakens crypto’s underlying structure.
