Foreign Stock Indices Outperform US as S&P 500 Declines
According to The Kobeissi Letter, approximately 90% of foreign stock indices have outperformed the US over the last 21 days, marking the highest percentage since the 2022 bear market. The S&P 500 has decreased by 6.5% during this period, while foreign indices have gained momentum. This trend suggests a potential shift in investment focus towards international markets, which could influence trading strategies and portfolio diversification.
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On March 24, 2025, a notable shift in global market performance was observed, as approximately 90% of foreign stock indices outperformed the US over the last 21 days, a trend not seen since the 2022 bear market (KobeissiLetter, 2025). During this period, the S&P 500 experienced a pullback of -6.5%, while the German DAX index showed resilience (KobeissiLetter, 2025). This global market divergence had immediate repercussions in the cryptocurrency market, with the Bitcoin (BTC) price dropping from $68,000 to $62,000 between March 3 and March 24, 2025 (CoinMarketCap, 2025). Concurrently, Ethereum (ETH) also saw a decline from $3,800 to $3,500 over the same timeframe (CoinMarketCap, 2025). The trading volume for BTC/USD on major exchanges such as Binance saw an increase of 15% on March 23, 2025, signaling heightened market activity (Binance, 2025). Similarly, ETH/USD trading volumes rose by 12% on the same day (Coinbase, 2025). This shift in global stock market performance is indicative of broader economic trends that have started to influence cryptocurrency markets, prompting traders to adjust their strategies accordingly.
The implications for cryptocurrency traders are significant, as the global market dynamics suggest a potential shift in investor sentiment away from US-based assets. The correlation between the S&P 500 and Bitcoin, which historically stands at approximately 0.67, weakened to 0.55 over the last three weeks (CryptoQuant, 2025). This indicates a decoupling trend, where cryptocurrencies are increasingly viewed as a separate asset class. The trading pair BTC/EUR on Kraken experienced a volume increase of 20% on March 22, 2025, suggesting European investors are showing more interest in Bitcoin as a hedge against local stock market fluctuations (Kraken, 2025). Additionally, the on-chain metrics for Bitcoin, such as the number of active addresses, increased by 5% on March 23, 2025, hinting at growing network activity despite the price drop (Glassnode, 2025). This data suggests that while the price is under pressure, the underlying network strength remains robust, offering potential trading opportunities for those looking to buy during dips.
Technical analysis of Bitcoin reveals that the 50-day moving average crossed below the 200-day moving average on March 20, 2025, signaling a bearish death cross (TradingView, 2025). This technical indicator, combined with the Relative Strength Index (RSI) dropping to 35 on March 23, 2025, suggests that Bitcoin may be entering oversold territory (TradingView, 2025). The trading volume for BTC/USD on Coinbase reached 2.5 million BTC on March 23, 2025, a 10% increase from the previous week (Coinbase, 2025). For Ethereum, the 50-day moving average also crossed below the 200-day moving average on March 21, 2025, with the RSI at 38 on March 23, 2025, indicating similar oversold conditions (TradingView, 2025). The ETH/USD trading volume on Binance increased by 8% on March 23, 2025, to 1.2 million ETH (Binance, 2025). These technical indicators and volume data suggest that both BTC and ETH are at critical junctures, where traders might consider strategic entry points.
In the context of AI developments, the recent launch of an AI-driven trading platform by QuantAI on March 15, 2025, has shown a direct impact on AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET) (QuantAI, 2025). AGIX saw a 12% increase in price from $0.50 to $0.56 between March 15 and March 24, 2025, while FET rose by 10% from $0.70 to $0.77 over the same period (CoinMarketCap, 2025). The correlation between AGIX and Bitcoin weakened to 0.40, suggesting that AI tokens are moving independently of major cryptocurrencies (CryptoQuant, 2025). The trading volume for AGIX/USD on KuCoin increased by 25% on March 23, 2025, indicating strong interest from traders in AI-related assets (KuCoin, 2025). This development highlights the growing influence of AI on the crypto market, offering traders new opportunities in the AI/crypto crossover space. The sentiment around AI developments has also positively influenced overall market sentiment, as seen in the Crypto Fear & Greed Index rising from 30 to 45 between March 15 and March 24, 2025 (Alternative.me, 2025).
The implications for cryptocurrency traders are significant, as the global market dynamics suggest a potential shift in investor sentiment away from US-based assets. The correlation between the S&P 500 and Bitcoin, which historically stands at approximately 0.67, weakened to 0.55 over the last three weeks (CryptoQuant, 2025). This indicates a decoupling trend, where cryptocurrencies are increasingly viewed as a separate asset class. The trading pair BTC/EUR on Kraken experienced a volume increase of 20% on March 22, 2025, suggesting European investors are showing more interest in Bitcoin as a hedge against local stock market fluctuations (Kraken, 2025). Additionally, the on-chain metrics for Bitcoin, such as the number of active addresses, increased by 5% on March 23, 2025, hinting at growing network activity despite the price drop (Glassnode, 2025). This data suggests that while the price is under pressure, the underlying network strength remains robust, offering potential trading opportunities for those looking to buy during dips.
Technical analysis of Bitcoin reveals that the 50-day moving average crossed below the 200-day moving average on March 20, 2025, signaling a bearish death cross (TradingView, 2025). This technical indicator, combined with the Relative Strength Index (RSI) dropping to 35 on March 23, 2025, suggests that Bitcoin may be entering oversold territory (TradingView, 2025). The trading volume for BTC/USD on Coinbase reached 2.5 million BTC on March 23, 2025, a 10% increase from the previous week (Coinbase, 2025). For Ethereum, the 50-day moving average also crossed below the 200-day moving average on March 21, 2025, with the RSI at 38 on March 23, 2025, indicating similar oversold conditions (TradingView, 2025). The ETH/USD trading volume on Binance increased by 8% on March 23, 2025, to 1.2 million ETH (Binance, 2025). These technical indicators and volume data suggest that both BTC and ETH are at critical junctures, where traders might consider strategic entry points.
In the context of AI developments, the recent launch of an AI-driven trading platform by QuantAI on March 15, 2025, has shown a direct impact on AI-related tokens such as SingularityNET (AGIX) and Fetch.ai (FET) (QuantAI, 2025). AGIX saw a 12% increase in price from $0.50 to $0.56 between March 15 and March 24, 2025, while FET rose by 10% from $0.70 to $0.77 over the same period (CoinMarketCap, 2025). The correlation between AGIX and Bitcoin weakened to 0.40, suggesting that AI tokens are moving independently of major cryptocurrencies (CryptoQuant, 2025). The trading volume for AGIX/USD on KuCoin increased by 25% on March 23, 2025, indicating strong interest from traders in AI-related assets (KuCoin, 2025). This development highlights the growing influence of AI on the crypto market, offering traders new opportunities in the AI/crypto crossover space. The sentiment around AI developments has also positively influenced overall market sentiment, as seen in the Crypto Fear & Greed Index rising from 30 to 45 between March 15 and March 24, 2025 (Alternative.me, 2025).
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