S&P 500 Sits 2.5% From a Record High Despite the Stock Market Crash

Despite a historic stock market crash last week, the SP 500 has largely recovered, and its now just 2.5% away from a new all-time high. Throughout 2026, Bitcoin has moved along with the stock market, driven by similar macroeconomic trends. However, the crypto market downturn is largely unmoved, so far. This is unbelievable.The SP 500 is now up 3.65% this week and just 2.5% away from a new ALL TIME HIGH. How the SP 500 Bounced Back From Last Weeks Crash Last week, an AI-driven selloff hit Wall Street hard. On November 5, the Nasdaq Composite fell 5.5%, while the SP 500 posted one of its biggest wipeouts in history. Now, stocks have recovered much of that ground. Notably, the rally continued despite hot inflation data. Octobers CPI rose 0.4% month over month, above the expected 0.3%. Core prices also climbed 0.3% for a third straight month. As a result, traders now see an 87% chance of a Fed rate hike in December. But falling oil prices helped offset some inflation fears. Many investors also appear to have bought the dip in AI and chip stocks. Target Rate Probabilities for December 9 Meeting. Source: CME FedWatch Tool Can Bitcoin Follow the Rally Back to Its Highs? Bitcoin has struggled to keep pace: BTC trades near $74,400, roughly 40% below its ATH. Spot Bitcoin ETFs also saw nearly $1.3 billion in outflows in early November. Additionally, NVIDIAs controversy weighed on tech stocks, keeping crypto traders cautious. BTC has recently traded as a high-beta proxy for risk appetite. Therefore, a record-breaking SP 500 could lure buyers back. Under that path, Bitcoin could first target its 50-day moving average near $82,000. Renewed ETF inflows would strengthen that recovery. However, rate-hike fears dominate. Higher rates typically hurt non-yielding assets like Bitcoin more than profitable companies. Moreover, a stronger dollar from higher rates could add pressure on crypto prices. In that case, Bitcoin could test its 200-day moving average, just above $73,000. A clean break below that level would threaten the longer-term uptrend. For now, the gap between stocks and crypto remains wide. The Feds December decision may ultimately decide which scenario plays out. Read the article at BeInCrypto