Key Insights:
- Gold and the S&P 500 pushed to fresh records just as crypto market and Bitcoin cracked below a key support level.
- Stablecoin supply has started to roll over, falling about $2.2 billion in the latest pullback.
- The Coinbase Premium has also remained in negative territory, a sign that selling has dominated during U.S. hours.
S&P 500, stablecoin liquidity, and gold prices all pointed in the same direction in late January. On the other hand, investors favored the deepest, most established markets while crypto market fought for fresh fuel.
Gold price pushed through $5,000 an ounce for the first time. Days later, the S&P 500 climbed above $7,000 for the first time on Jan. 28, 2026.
In crypto, CryptoQuant’s commentary described warning signs in on-chain liquidity and framed the backdrop as capital shifting toward record-setting gold and U.S. equities.
That divergence matters because crypto market still trades like a liquidity market. When cash-like balances thin out, rallies struggle to broaden. And when traditional markets grab the headlines, crypto often becomes the asset class investors trim first.
S&P 500, Stablecoin Liquidity: A Closer Look at the Crypto Market
CryptoQuant posted a recent post on the capital rotation from the crypto market. Bitcoin (BTC) price struggles as liquidity shifts to record-breaking gold and S&P 500.
It also argues that the market is living in two lanes, precious metals and U.S. equities keep printing all-time highs, while Bitcoin on-chain signals look less supportive.
CryptoQuant also described this mix as historically consistent with late-cycle cooling phases, where price trades in ranges while the market rebuilds a healthier cost basis.
A manager who can buy broad equity exposure at record highs can still justify trimming marginal risk elsewhere, especially in a market where volatility shocks remain common.
Tradingview separately reported gold surged past $5,500 , hitting a record around $5,542.4. When gold rallies like that while equities also rally, investors often send a blunt message
Gold’s Record Run Pulls Attention From Crypto Market
The gold price surge to over $5,000 sparks investor anxiety and policy uncertainty in late January. MarketWatch, drawing on World Gold Council figures, reported that 2025 delivered a fresh record for gold.
Demand climbed past 4,000 metric tons for the first time and reached an estimated value of $555 billion, as investors drove much of the buying even as central banks eased off their pace.
This context matters for the crypto market because it competes for the same macro framing. Crypto often sells itself as an alternative hedge.
Besides, the stocks have also outperformed recently, as evidenced by the surge in S&P 500.
Gold, however, still owns that role in institutional portfolios. When gold hits records, allocators do not need to “discover” a hedge. They simply buy the one their committees already understand.
In crypto, stablecoins do not just sit there. They function like settlement cash. They also act as the staging ground for spot buying. When stablecoin activity cools, markets often lose their bounce.
CryptoQuant has been explicit on this point. In a quicktake published last year, it said stablecoin inflows into exchanges fell from about $158 billion since August to roughly $76 billion, a 50% decline in incoming liquidity. The same note added that the 90-day average decreased from $130 billion to $118 billion.
This describes a market that is not receiving the same steady stream of tradable dollars it had earlier in the cycle. And when stablecoin inflows slow, the market often turns selective. Bitcoin may hold up better than smaller coins. Or the entire complex may drift while traders wait for a catalyst.
This is why the S&P 500, stablecoin pairing is so useful. U.S. equities can keep levitating on earnings, buybacks, and index flows. The crypto market needs liquid inflows that are easier to measure, and stablecoins are one of the best proxies.
Why Bitcoin Struggles When Markets Split Like This?
CryptoQuant’s capital rotation note framed the present as a tale of two worlds. That framing is useful because it captures the psychological side of flow.
When investors see the S&P 500 making history, they feel less urgency to chase alt exposure. When they see gold ripping to records, they feel less urgency to hold speculative hedges.
Then, when stablecoin inflows drop, crypto loses the marginal bid that usually turns small rallies into broad trends.
CryptoQuant said a durable recovery would likely require leverage stabilization plus renewed spot demand. That is a sober way to phrase the same point.
If investors keep buying the S&P 500 at record levels, and if gold continues to attract safety flows, crypto market will need clearer evidence of replenished liquidity to compete.