- US stock indexes, S&P 500, Nasdaq, and Dow, ended higher this Friday.
- The crypto market noted an increase of 7.49% in its market cap.
- There are a few possible factors behind this rally.
Three US stock indexes have ended Friday on a high note, possibly paving the way for a surge in the global crypto market. It comes around the time when India & the US announced interim deals and Mary Daly expressed the need for further rate cuts. Kalshi Traders expect lower chances of $ATH for $BTC and $ETH in 2026.
A High for US Stock Indexes
S&P 500, Nasdaq, and Dow, all three US stock indexes, ended on a high note, with Dow recording the highest gain of 2.47%. It was followed by Nasdaq (2.18%) and S&P 500 (1.97%). Dow went on to hit the 50k milestone for the time. Most of it is attributed to clarity over AI-related concerns.
Amazon and Alphabet have expressed their intent to increase spending on AI data centers. Last week saw companies take a hit when AI was presented as a competitor, hurting their margins.
Additionally, a statement by San Francisco Federal Reserve Bank President Mary Daly has underlined the requirement for a rate cut. Mary, calling the current position of the labor market precarious, said that further rate cuts may be needed. There is currently a 22.7% chance for the US Federal Reserve to cut rate after the March meeting.
Crypto Market Jumps
A high end in the US stock indexes has brought out the confidence of investors, further reflecting in the recent price surges across the crypto market. The collective market cap is up by 7.49% to $2.41 trillion, even though the FGI walks in a single digit of 8 points. $BTC is back to the $70k mark, potentially testing a level of around $71,000 to avoid the projected low of $60,000.
Critical data pertaining to January 2026 inflation and employment is likely to come up next week. Stronger data, especially in inflation, could revise the chances of a rate cut. Thereby influencing prices in the crypto market to some extent.
Notably, positives in the US stock indexes and the crypto market come at a time when India and the US announced a confirmed interim deal. The recently agreed deal is yet to be signed and go into effect, but both countries are optimistic about taking the benefits back home. If true, then it signals stability between two big economies of the world.
Any $ATH in Sight?
All-time high values with respect to $BTC and $ETH are less likely to debut in 2026. This does not defy overall expectations of a bull run; however, it does hint at the possible outcome by the year-end. Kalshi Traders have laid out a 45% for Bitcoin tokens to hit $100k in 2026. Their projection for Ethereum tokens, in this regard, is 25% chance to a line of $4,000.
Kalshi Traders earlier called out the possibility for the flagship token to reach $64k this year, revising the lower limit to $60k with a 90% chance.