In a mixed financial backdrop, Monday saw a promising advance for the S&P 500, while the cryptocurrency market experienced a decline. The S&P 500 index, a crucial barometer of the US economy, saw a 0.3% increase, continuing its upward trajectory after hitting a record the previous Friday. On the other hand, the Dow Jones Industrial Average and the technology-focused Nasdaq 100 also posted gains of 0.2% and 0.5%, respectively.

This optimism in the stock market was driven largely by growing confidence in economic health and expectations of future profits, with a special focus on the wave of innovation brought by Artificial Intelligence. Technology stocks, particularly Netflix and Tesla, are in the spotlight as the investing community eagerly awaits their quarterly results.

At the same time, the US Federal Reserve remains silent ahead of its next meeting, scheduled for January 30. Indicators such as GDP and inflation, which will be released soon, are expected to shed light on the future trajectory of interest rates.

Cryptocurrency market today

On the other hand, the cryptocurrency market is facing a challenging phase. Bitcoin, the leading cryptocurrency, failed to sustain the $42,500 level, with consolidation around $40,200.

At the time of publication, the price of BTC was quoted at US$40,457.89 with a drop of 3% in the last 24 hours. A drop below $40,000 could lead to an even larger drawdown, possibly as low as $38,500.

Similarly, major altcoins like Ethereum, XRP, ADA, and Solana are also showing signs of weakening. Ethereum is struggling to overcome the $2,420 resistance, while XRP and ADA face difficulties in maintaining their support levels. Solana saw a significant drop of almost 8% in a single day.