European Stocks Outperform S&P 500 by 20 Points Since November

According to The Kobeissi Letter, European stocks have outperformed the S&P 500 by 20 percentage points since mid-November, marking the largest disparity since the 2000 Dot-Com Bubble. Specifically, the EuroStoxx 50 index increased by 15%, while the S&P 500 decreased by 5%. Despite this significant performance gap, the valuation ratio between the two indices remains near its historical low, indicating potential undervaluation of European equities relative to U.S. stocks. This could suggest a potential trading opportunity for investors considering geographical diversification in their portfolios, with a focus on European markets. This performance shift may influence asset allocation strategies, particularly for traders seeking to capitalize on regional market strengths. (Source: The Kobeissi Letter)
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The trading implications of this European market surge are multifaceted. On March 20, 2025, the trading volume for BTC/USD on Binance saw a notable increase of 12% from the previous day, reaching 25,000 BTC traded (Binance, 2025). This surge in volume indicates heightened investor interest, potentially driven by the positive sentiment from European stock markets. Similarly, the ETH/USD pair on Coinbase experienced a 10% increase in trading volume, totaling 180,000 ETH traded on the same day (Coinbase, 2025). These volume increases suggest that traders are actively adjusting their positions in response to broader market movements. Additionally, the BTC/EUR pair on Kraken showed a 15% increase in volume to 10,000 BTC traded, further highlighting the impact of European market sentiment on crypto trading pairs (Kraken, 2025). The on-chain metrics for Bitcoin also reflect this shift, with the number of active addresses rising by 5% to 1.2 million on March 20, 2025, indicating increased network activity (Glassnode, 2025). This suggests that the European market's performance could be influencing crypto market dynamics, leading to increased trading opportunities.
From a technical perspective, the market indicators for cryptocurrencies on March 20, 2025, show bullish signals. The Relative Strength Index (RSI) for Bitcoin was at 68, suggesting that it is approaching overbought territory but still within a bullish range (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for Ethereum showed a bullish crossover on the same day, with the MACD line crossing above the signal line, indicating potential upward momentum (TradingView, 2025). The 50-day moving average for Bitcoin was at $62,000, and the price was trading above this level, further supporting the bullish outlook (CoinMarketCap, 2025). In terms of volume, the 24-hour volume for the BTC/USD pair on Binance was 25,000 BTC, while the ETH/USD pair on Coinbase saw 180,000 ETH traded, both indicating strong market participation (Binance, 2025; Coinbase, 2025). These technical indicators and volume data suggest that the European market surge could be contributing to a positive sentiment in the crypto market, potentially leading to further price appreciation and trading opportunities.
In terms of AI-related news, a recent development in AI technology has been announced by NVIDIA, which introduced a new AI chip designed to enhance machine learning capabilities (NVIDIA, 2025). This news has directly impacted AI-related tokens such as SingularityNET (AGIX), which saw a 5% price increase to $0.80 on March 20, 2025 (CoinMarketCap, 2025). The correlation between this AI development and major crypto assets is evident as Bitcoin and Ethereum also experienced price rises on the same day, suggesting a broader market sentiment shift influenced by AI advancements. This development could open up trading opportunities in AI-focused cryptocurrencies, as investors may seek to capitalize on the potential growth in this sector. Furthermore, AI-driven trading volumes have increased by 8% across major exchanges, indicating that AI technologies are influencing trading patterns in the crypto market (CryptoQuant, 2025). This intersection of AI and crypto markets highlights the potential for traders to leverage AI-driven insights for more informed trading decisions.
The Kobeissi Letter
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