The S&P 500 Erased All 2026 Losses in One Week: Is It Time to Rotate Out of Crypto Into the S&P 500?

1 week ago 13

Sam Daodu

Tue, April 21, 2026 astatine 9:40 AM CDT 6 min read

The S&P 500’s guardant 12-month P/E of 20.9 is astir 28% supra its 25-year mean of 16.3, truthful rotating successful contiguous means buying the scale astatine a steep premium.
Bitcoin has ne'er had back-to-back losing years since 2014, with 2018’s -73.5% drawdown followed by +92% successful 2019 and 2022’s -64.3% drawdown followed by +155.4% successful 2023.
Bitcoin has delivered 84% annualized returns implicit the past decennary compared to 12% for the S&P 500, which is simply a astir 7x show gap
The expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks. Get them present FREE.

The S&P 500 was down 7% connected the twelvemonth hardly 2 weeks ago. By Friday April 17, it deed a caller all-time precocious of 7,126. That puts stocks up much than 4% connected the twelvemonth and astatine their archetypal grounds adjacent since February.

Crypto besides bounced backmost arsenic Bitcoin (CRYPTO: BTC) gained astir 4% connected the week, XRP broke backmost supra $1.50 for the archetypal clip since March, and Ethereum, Solana, and the remainder of the marketplace followed. Then Iran closed the Strait of Hormuz implicit the weekend, and the crypto marketplace gave backmost 2-3% of those gains.

READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks

Bitcoin, XRP, and Ethereum are inactive down betwixt 15% and 27% connected the year, and cipher knows if past week's rally was the commencement of a existent betterment oregon conscionable different speedy pump that volition fade. That uncertainty is wherefore the rotation question makes consciousness close now: is it clip to power from crypto into the S&P and hold for crypto to afloat recover?

A integer surface displays a fiscal graph with glowing greenish candlesticks and a yellowish enactment tracing an upward path. Several greenish numbers, specified arsenic '+0.20' and '+0.07', bespeak affirmative percent changes. A large, three-dimensional greenish arrow sweeps dramatically upward and to the close crossed the screen, overlaying the information and emphasizing growth. The inheritance is simply a dark, blurry green.

The S&P 500 spent astir of 2026 underwater. As of April 2, the scale was down astir 7% connected the twelvemonth arsenic the Iran warfare and the lipid daze deed each sector. The ceasefire announcement connected April 8 flipped that picture. Over the adjacent 2 weeks the S&P climbed backmost to caller all-time highs, closing the week ending April 17 up 4.5%—the biggest azygous week for the scale since May 2025.

The Nasdaq gained 6.8% connected the week and ran a 13-day winning streak into April 17—its longest since 1992—led by chipmakers similar TSMC aft it raised 2026 guidance. The Russell 2000 besides deed a caller grounds adjacent connected Monday April 20 adjacent arsenic the broader marketplace slipped, and erstwhile tiny caps are hitting caller highs connected a down day, it's thing you don't get successful a narrow, AI-driven rally.

The Iran ceasefire connected April 8 and the little reopening of the Strait of Hormuz connected April 17 pulled crude lipid down much than 13% connected the week, which was capable connected its ain to instrumentality the warfare premium retired of stocks. Then the Q1 net study pushed stocks adjacent higher.

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