In the global financial landscape, the US stock market has always been the center of risk pricing. But did you know? The two seemingly similar indices, the S&P 500 and Nasdaq, actually hide significant differences—and these differences are quietly influencing the direction of BTC, ETH.

**Two Indices, Two Personalities**

The S&P 500 represents the overall picture of the US economy. 500 companies across finance, energy, healthcare, consumer, industrial sectors, serving as a "comprehensive thermometer" of the US economy. It focuses on current profits, real cash flow, and stable growth. In other words—this guy is quite pragmatic.

Nasdaq is different. It is entirely focused on tech and growth-oriented companies—AI, semiconductors, cloud computing, biotech... all high-elasticity industries. It reflects not the current economic reality but the market’s imagination of the future. Simply put, Nasdaq is a "dreamer."

So, the personalities of the two become apparent: the S&P is steady and reliable, suitable for long-term trends; Nasdaq is agile and volatile, amplifying market sentiment and expectations.

**The Secret Behind Volatility**

Historical data shows—Nasdaq’s volatility is noticeably higher than that of the S&P 500. This is no coincidence. Whenever liquidity is abundant and rate cut expectations rise, funds seem to grow legs and rush first to Nasdaq. Conversely, when rate hikes, balance sheet reduction, or macro uncertainties occur, Nasdaq is the first to pull back.

This high sensitivity resonates most with the crypto market. The volatility of BTC and ETH often follows global macro liquidity first, and Nasdaq, as a "risk appetite thermometer," can reflect capital flow changes in advance. When Nasdaq strengthens and market risk appetite rises, crypto assets often benefit; and vice versa.

Simply put, if you want to judge the short-term movement of the crypto market, keeping an eye on Nasdaq’s rhythm is often more accurate. The S&P 500 is better for studying long-term trends, while Nasdaq is more suitable for capturing every emotional shift in the market.