RECORD-BREAKING DOW SPARKS A MOVE OUT OF TECH AND CRYPTO MARKETS

CRYPTO FEAR AND GREED INDEX DROPS, DELAYING EXPECTED ALTCOIN BREAKOUT

The crypto market slipped on Thursday even as the Dow Jones Industrial Average surged to a new record high, highlighting a clear shift by investors from tech assets toward more traditional, economically sensitive stocks after the Federal Reserve’s latest interest-rate cut.

Bitcoin held just above $91,000, down around 1.5%, while Ethereum dropped about 5% to trade near $3,200.

The weakness extended across the broader digital-asset space. The total crypto market cap fell 2.3% to roughly $3.2 trillion, with one report noting that 97 of the top 100 tokens were trading lower.

Still, investor interest in regulated crypto products remained strong. Data from Thursday, Dec. 10, showed continued inflows into major ETFs:

• Spot Bitcoin ETFs drew in $224 million in net inflows.
• Ethereum ETFs recorded $57.6 million in net inflows.
• Spot XRP ETFs have accumulated $954 million in investments since Canary Capital launched the product in November.

INVESTORS WITHDRAW $2.7B AS BLACKROCK BITCOIN ETF HITS LONGEST OUTFLOW TREND

These steady inflows suggest that institutional demand for digital assets remains intact despite short-term market volatility.

Traditional Markets Paint a Different Picture

The Dow Jones surged 600 points on Thursday—up 1.3%—marking a new record high, according to CNBC.

The jump came as investors pulled back from high-growth tech stocks following disappointing earnings from Oracle. The company’s results raised fresh concerns about how quickly major firms can profit from their massive artificial intelligence (AI) investments. Oracle’s more than $100 billion in debt tied to data-center expansion also weighed heavily on market sentiment, dragging down other AI-linked names like Nvidia, Broadcom, AMD, and CoreWeave.

This shift interrupted the previous session’s momentum, which saw the S&P 500 finish just shy of its own record high after the Federal Reserve cut interest rates for the third time this year. The benchmark rate now sits between 3.5% and 3.75%, with officials signaling no further hikes ahead.

What Comes Next

Despite rising uncertainty, steady ETF inflows show that major investors aren’t abandoning crypto—they’re simply preparing for a more volatile stretch ahead.

Whether a traditional year-end “Santa Claus rally” can lift the S&P 500 past the 7,000 mark is still unclear. Looking ahead to 2026, analysts point to several potential challenges, including a possible shift in Federal Reserve leadership and the upcoming midterm elections.

Lower borrowing costs also boosted smaller companies. The Russell 2000 jumped 1.3% to reach a new intraday high on Thursday, following a record close the day before.

Meanwhile, crypto markets remain cautious. The Crypto Fear and Greed Index slipped from 30 to 29, keeping sentiment firmly in “fear” territory as traders await further macroeconomic cues and potential government action after recent administrative disruptions.

Conclusion

The market landscape is clearly shifting. While the Dow’s record-breaking climb signals renewed confidence in traditional sectors, crypto and tech continue to face pressure from profit-taking, macro uncertainty, and cautious sentiment. Yet strong ETF inflows show that institutional players remain engaged, suggesting the current weakness may reflect rotation—not retreat. As year-end approaches, investors will be watching whether a Santa Claus rally materializes and how upcoming 2026 events shape the broader market outlook.