Stocks remain strong while crypto market faces decline—understanding the divergence between these two markets

Despite a significant decline in the crypto market, the S&P 500 and Nasdaq have shown strong performance with controlled pullbacks this week. The S&P 500 is currently at 6,627.66, while the Nasdaq stands at 22,476.83.

The divergence is caused by liquidity conditions impacting crypto more intensely, strong earnings reports from stocks, and internal sell pressures within the crypto market. Stocks benefit from institutional investments, which is not the case for crypto.