The crypto market's been on high alert lately. S&P 500 just smashed through another all-time high, and traders are watching every move—because historically, when traditional markets peak like this, it tends to create ripples across digital assets.

Here's the thing: crypto's relationship with equities is getting tighter by the day. A decade ago, Bitcoin did its own thing regardless of Wall Street action. Now? Tech stocks rally, institutions rotate capital, and you're seeing inflows into crypto. It's like the two markets are dancing to the same macro beat—Fed policy, inflation data, liquidity conditions.

Some are calling it a risk-on environment where everything rallies together. Others see it differently: when traditional markets run this hot, smart money sometimes hedges by diversifying into uncorrelated assets like digital currencies.

The real question isn't whether S&P hitting new highs is bullish or bearish for crypto. It's about understanding the underlying fuel: Is it genuine economic expansion, or just asset price inflation pumped by loose monetary conditions? That distinction matters.