The S&P 500 Erased All 2026 Losses in One Week: Is It Time to Rotate Out of Crypto Into the S&P 500?
The S&P 500 index surged to a new all-time high, wiping out its 2026 losses, while cryptocurrency markets saw a brief rally followed by a decline. Investors are now considering whether to rotate out of crypto into the S&P 500.
The S&P 500 index reached a new all-time high of 7,126 on April 17, erasing its 2026 losses and rising over 4% on the year. The index had been down 7% just two weeks prior due to the Iran war and oil shock. A ceasefire announcement on April 8 and strong Q1 earnings reports drove the S&P 500's recovery. The Nasdaq and Russell 2000 also hit new highs, with the Nasdaq gaining 6.8% on the week. Cryptocurrency markets saw a brief rally, with Bitcoin gaining 4% on the week, but lost 2-3% after Iran closed the Strait of Hormuz. Investors are now debating whether to rotate out of crypto into the S&P 500, but the S&P's high P/E ratio and Bitcoin's low price compared to its all-time high make the decision challenging.
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