Will the S&P 500 bounce back as oil falls as Bitcoin prices rise?

[ad_1]

The S&P 500 index broke records, reaching 7,534 points on Memorial Day, led by falling oil prices amid signs of stability in the Middle East. An initial agreement between the Trump administration and Iran to reopen the Strait of Hormuz has seen Brent crude fall below $100 a barrel, easing global risks that have forced investors into defensive positions for weeks.

Monday, bank holiday, before market and $SP500 is $NQ they are well above the last ATH.

$SP500 has had 9 green bars every week which is insane. pic.twitter.com/mFnqRYis4y

– Dren (@dren_fazliu) May 25, 2026

Although the BTC ETF is doing well after a bloody week, the question remains: can Bitcoin take advantage of this trend? Or has the downtrend not reached the bottom?

A reversal of the correlation between Bitcoin and the S&P 500

Bitcoin’s correlation with the S&P 500 isn’t just statistical; In previous years of risk appetite in stocks, the 90-day correlation of Bitcoin with the index repeatedly rose to 0.3-0.5, compared to almost zero or negative readings during the risk period.

UBS expected the S&P 500 to reach 7,500 points by the end of 2026, based on revenue growth of around 14%, with artificial intelligence and technology contributing to around half of this growth. When the process reaches this goal early, it reduces the expected time of all the risk factors associated with it.

Technically, the Bitcoin price pattern is showing a retracement of the 200-day Exponential Moving Average (200-day EMA), and horizontal resistance near its previous record. The technical setup looks good after reaching what appears to be the bottom, but the problem now is how long it will take for the macros to progress enough to break through these levels.

The key change to watch remains the need for infrastructure, especially if the Nasdaq market and its ETFs will continue to pick up on current data, or begin to show exit issues before the big data is released.

The drop in oil prices: the slow wave that awaits crypto

If they go back Brent crude Below $ 100 a barrel is not a support for stocks, but directly entering the path of inflation that has kept the Federal Reserve on a strict path and kept the crypto markets pinned to the side.

The oil price dynamics linked to the Iran deal follow a predictable pattern: lower oil prices mean lower expectations for the Consumer Price Index (CPI), which would reduce the Fed’s pressure to keep… Interest rate At restrictive levels. As a result, the dollar weakens and financial conditions improve, allowing risky assets, including Bitcoin, to regain their value.

ENTERTAINMENT:

BRENT CRUDE FALLS BELOW $100 AS EXPECTATIONS GROW ON POSSIBLE US-IRAN DEAL.

OPERATIONS MAY INCLUDE THE REPLACEMENT OF FIRE AND THE RE-OPENING OF THE STRAIT OF HORMUZ.

ABOUT 20% OF THE WORLD’S OIL IS USED

THE MARKET IS STARTING TO GO PRICE IN A… https://t.co/bQGMGo4V1t pic.twitter.com/aLNOVzUwFM

– The Bitcoin Times (@TheBitcoinTime) May 25, 2026

Brent crude settled for several weeks above $100 after Iran blocked the Strait of Hormuz, a key transit point through which about 20% of the world’s oil flows. AAA data also showed global oil prices hitting their highest level in four years ahead of the Memorial Day holiday.

This rise in prices has made futures markets too cheap for the Fed to raise rates instead of cutting them, which would have been more difficult for cryptocurrencies. However, the framework agreement, although not finalized, changes these cost calculations.

A note Will the S&P 500 bounce back as oil falls as Bitcoin prices rise? appeared for the first time Cryptonews Arabic.

[ad_2]

Source link