Bitcoin and Ethereum Are Decoupling From US Equities, Stocks Overvalued, Crypto Undervalued

• Bitcoin and Ethereum are decoupling from US equities.

• Trader says stocks and equities are overvalued while crypto is undervalued.

• Has the capital rotation into the crypto market begun?

Crypto market prices continue to hold strong as the price of BTC trades above the $80,000 price range and the price of ETH trades above the $2,300 price range. As for what moves are expected next, even reputed traders seem to be discussing both bearish and bullish news. According to one trader, Bitcoin and Ethereum are decoupling from US equities, and says that stocks are overvalued while crypto is undervalued.

Bitcoin and Ethereum Are Decoupling From US Equities

Presently, reputed crypto traders are torn between the possibilities of where the price of BTC and altcoins will go next. At the moment, the fact that the price of BTC has been holding strong above the $80,000 price range shows promise. This means that if BTC can continue to rise above other resistance levels, the asset could go on to hit higher targets over the coming months ahead.

Over the past few weeks, BTC struggled to rise above $76,000, a move that took a few weeks to accomplish. Since then, the asset has been holding strong above $80,000. Despite this show of strength, a few analysts believe that BTC will fail to break above the next resistance phase, which is $84,000, leading to a heavy fall in prices, allowing BTC to drop to the $50,000 price range and then go on to set a bottom price around $40,000.

THE MOST DECEPTIVE PATTERN IN CRYPTO. BITCOIN IS IN IT.

Rising wedge. Since February.

Every higher high looks like momentum.
Every higher low looks like strength.

It’s neither. It’s compression before a breakdown.

$84K is the top of the wedge. Rejection zone.
Break below… pic.twitter.com/4pP2ndg3E4

— Merlijn The Trader (@MerlijnTrader) May 11, 2026

As we can see from the post above, this trader states that BTC is drawing a deceptive pattern, which is the rising wedge formation it has been printing since February. To highlight, the asset says that every higher high looks like momentum, while every higher low looks like strength. However, the expert concludes that it is neither, but rather compression before a breakdown.

Stocks Overvalued and Crypto Undervalued

He then goes on to conclude that $84,000 is the top of the wedge, which is the rejection zone, and expects a break below $80,000 with a measured $56,000 target. He finishes the post by stating that while everyone sees the uptrend, the wedge sees something else. The same trader then goes on to share an observation, which is that Bitcoin and Ethereum are decoupling from U.S. equities at the moment.

MASSIVE:

Bitcoin and Ethereum are decoupling from U.S. equities. Right now.

Everyone is pointing to the CLARITY Act.
The pro-Bitcoin Fed Chair.
The Digital Asset Reserve.

All real. All bullish.

But the real reason is simpler.
BTC and ETH are cheap.
U.S. equities are… pic.twitter.com/SOIHo9lrer

— Merlijn The Trader (@MerlijnTrader) May 11, 2026

As we can see from the post above, he says that while everyone is pointing to the CLARITY Act, the pro-Bitcoin Fed Chair, and the Digital Asset Reserve marking all bullish indicators, it is clear that BTC and ETH are simply the cheaper assets in comparison to US equities, which are significantly overvalued. Thus, he concludes by saying that the capital rotation has begun, leading to inflows into the crypto market.