Holidays Market Snapshot: Gold Clocks New High alongside Global Liquidity, The Crypto Market Remains Sidelined

Key Insights

• Global liquidity is on the rise, but can it trickle down to crypto market in 2026?
• Gold rallies to a new all-time high: What this means for risk-assets like Bitcoin.
• Risks and opportunities ahead as the market attempts to find a directional footing.

The crypto market experienced a surge of bullish excitement at a time like this last year. However, fast forward to the present, and liquidity flows have not been favoring cryptocurrencies this holiday season.

The crypto market may not be experiencing excitement, but that was not the case elsewhere. Gold has been making headlines this week courtesy of its bullish trajectory.

Gold price surged as high as $4,525 today, effectively marking a new ATH. Meanwhile, the crypto market sentiment remained in an extreme state of fear; hence, it is necessary to explore the dynamics between the two.

Gold price rallies have historically coincided with a flight to safety, especially during periods of high market uncertainty. This aligns with the current situation, which highlights uncertainty in the cryptocurrency market, largely due to macroeconomic factors.

Will Rising Global Liquidity Favor the Crypto Market in 2026?

This is the pertinent question now that 2026 is less than a week away. The current dynamic between gold and the cryptocurrency market offers a decent snapshot of the market, but zooming out to consider the broader liquidity situation may provide a better perspective on the bigger picture.

According to the latest data, global liquidity recently surged to new highs. This typically means that there is more liquidity circulating in the market, ready to capitalize on growth opportunities.

This includes liquidity waiting for the right moment to flow into the crypto market. The data also revealed that most of the liquidity came from some of the world’s major economies, including the U.S., Japan, China, and India.

The surging global liquidity reflects the current situation in the cryptocurrency market, particularly in the stablecoin segment. The total stablecoin market cap recently surged to $27 billion, courtesy of robust stablecoin minting since 2024.

Analysts predict that the stablecoin market cap could reach over $1 trillion within the next four years. Especially now that the lines between crypto and TradFi have been blurring, and institutional liquidity has been making inroads into the crypto market.

The Relationship Between the Crypto Market and The S&P500

The cryptocurrency market demonstrated a significant degree of correlation with the stock market, particularly the S&P 500, in 2025. Interestingly, the improving liquidity conditions already seem to be favoring the S&P500, which was on the verge of pushing into new ATH territory at the time of observation.

This suggests that the crypto market is poised for a bullish start in 2026, especially if it maintains its current correlation. Currently, the crypto market is lagging behind the S&P 500 index.

The current divergence might be explained by the fact that Bitcoin and altcoins are ranked higher up on the risk spectrum. Moreover, the S&P500 consists of some of the top stocks that attract eager investors.

The fact that the S&P500 has already been rallying this week suggests that investor sentiment may be shifting. However, this may not necessarily squash downside risks.

Analysts remained vigilant about the macroeconomic headlines in 2026. This is because governments worldwide have been struggling to control inflation.

Inflation and stagflation risks could undermine the cryptocurrency market’s ability to recover in 2025. The crypto market could plunge into an extended bear market in 2026 if the macroeconomic conditions worsen in the coming months.