Welcome to the US Crypto Morning News—get up to date on the most important developments in the crypto industry today.
Grab your coffee as markets are buzzing with mixed signals. Wall Street’s biggest names are cautioning that stocks appear overvalued, while Bitcoin’s momentum against major indexes is fading, leaving investors wondering if a quiet period is underway.
Crypto News of the Day: Wall Street Sees Valuations “Adequate, Not Cheap” as Forecasts 10-15% Correction
Wall Street’s biggest names are warning about an overheated market. Bloomberg reports that Goldman Sachs’ David Solomon, Morgan Stanley’s Ted Pick, and Citadel’s Ken Griffin expect a 10-15% correction in stocks over the next 12-24 months, which they say would be a “healthy” correction after a prolonged rally.
Capital Group CEO Mike Gitlin Chia the sentiment, saying that while corporate earnings remain strong, valuations have reached “full, no longer cheap” levels.
“The challenge is valuation,” he said at a financial conference in Hong Kong organized by the city's Monetary Authority.
Gitlin noted that the S&P 500 is currently trading at 23 times expected earnings, above its five-year Medium of 20. He said this signals that risk premiums have compressed even as policy uncertainty persists.
Most investors would agree that the market is “between fair and full,” Gitlin added, but few would say it is “between cheap and fair.” Credit spreads are following a similar pattern, with pricing power but not much cushion against shocks.
Wall Street and CEOs on valuation.Cryptocurrencies Reflect Macro Factors: Bitcoin Weakens Against S&P 500
The caution on Wall Street is also spilling over into the crypto market, as Bitcoin’s relative weakness against the S&P 500 (BTC/SPX) is being compared to last year’s late-cycle behavior .
Crypto analyst Brett noticed that BTC/SPX is recording three consecutive candles below the 50-week simple moving Medium , a level that has supported the asset during previous bull runs.
“In the previous cycle, Bitcoin started to show weakness against the SPX near the end of the cycle,” he said , warning that losing this level could herald a broader rotation away from risk assets.
Brett also observed that in the past three cycles, when Bitcoin peaked, the S&P 500 entered a correction period lasting 750-850 days, often retesting the pre-peak price before resuming the uptrend. If history repeats itself, the stock market could be approaching a similar turning point.
Meanwhile, Bitwise CEO Hunter Horsley suggests that the 2026 bear market prediction may have “pre-empted” many downside risks.
“What if we were actually in a bear market for most of this year? Crazier things have happened. The market is changing,” he asked .
As stocks approach record valuations and Bitcoin's momentum fluctuates relative to traditional indices, both markets appear to be heading toward a price correction rather than a crash.
Based on predictions from top CEOs, the tone on Wall Street is cautious but not panicky, suggesting that while risk appetite remains high, investors may soon prioritize fundamentals over euphoria.
Chart of the day
Bitcoin vs S&P 500. Source: TradingViewByte-Sized Alpha
Here is a summary of other notable US cryptocurrency news today:
