Crypto market stuck in the mud while tech stocks soar—here's why!

The crypto market's stuck in the mud while giants like Amazon, Meta, and Nvidia are breaking records over the weekend. Here's the scoop.

Investors have pulled off a wild comeback, pouring money back into big tech stocks with a newfound swagger. The tech-heavy Nasdaq bounced back a whopping 32% from its April nosedive, which was hammered by those killer tariffs causing a 21% plunge.

Meanwhile, the S&P 500 shot up 23% in the second half of the year, leaving Europe's Stoxx 600 in the dust with a measly 8% rise. Analysts say tech giants like Nvidia, Google, and Amazon are the masterminds behind this surge, just like they've been for other rallies.

Despite the stock market's party, crypto's just chilling, barely moving as tech stocks soar. As of June 30, the crypto market cap dipped 1.6% to a mere $3.4 trillion in the last 24 hours. Big names like Bitcoin, Ethereum, Solana, and XRP? They're showing more zeroes than gains.

Bitcoin's barely budged, dipping just 0.63% and hovering around $107,000. XRP and Solana took a 0.8% hit, and Ethereum dropped 0.23%. The board might not look trashed, but traders were hoping for a bigger piece of that tech stock rally pie.

Tech and crypto stocks reach record highs

The "Magnificent Seven" tech stocks are crushing it, hitting major gains based on pre-market buzz and previous close prices.

The S&P 500 and Nasdaq nearly touched their all-time highs, thanks to a tech stock comeback after the Fed warned about Trump's tariffs messing with the market.

Google's stock soared 2.20% in intraday trading, jumping 3.84 points. Amazon wasn't far behind, gaining 2.85% to add to its $223.30 share value, after a lukewarm 0.63% close the day before.

Nvidia hit a record high last week, driving the Wall Street AI rally. Peter Thiel's Palantir surged over 50% in the second half of the year, while Meta Platforms saw a 25.3% rise in the last six months.

Microsoft and Tesla took a small hit, dropping 0.30% and 0.61% in the last day of trading. Still, Microsoft's up 17% in the last six months, while Tesla's been sliding down 20%.

On the crypto front, Coinbase got a 1.64% boost in the last 24 hours. COIN's value doubled over the weekend as investors flocked to crypto-related stocks.

Meanwhile, MicroStrategy (MSTR) closed at 5.53 after a quick 1.44% surge, then dipped 0.66% on June 30. MSTR's been riding a week-long rally thanks to its Bitcoin accumulation strategy, up 5.83% in five days.

Why are tech stocks outperforming while the crypto market stays flat?

Analysts say the tech stock rally's all about AI advancements and clearer market views, boosting investor confidence. Amazon and Meta's big AI investments right before the rally didn't hurt either.

Plus, tech giants are dropping strong second-quarter earnings, making investors throw more cash into the market and lifting those share prices.

On the flip side, crypto trading's slowed down big time. The daily trading volume tanked 43% from the day before, dropping from $132.63 billion to just $75 billion on June 30 - that's a whopping $60 billion drop in 24 hours.

Bitcoin's monthly gains are barely there, ranging from 0% to 2% max, especially when compared to its ETFs. Bitcoin ETFs saw a third week of straight inflows, hitting $2.2 billion. Institutional demand for BTC's up, but retail investors? They're sitting this one out.

Investors are still playing the waiting game for crypto regulatory clarity. Even with easing interest rates and inflation, which should be a boost for risk assets like tech, the regulatory haze is still holding back the crypto market's full throttle.