Bitcoin News Today: U.S. Stocks Hit Records, Crypto Stocks Fall 1.66%-2.18% Amid Dollar Gains and Earnings Optimism

The three major U.S. stock indexes closed higher on July 26, marking a record week of performance, while crypto-related equities faced downward pressure. The S&P 500 notched its fifth consecutive record close at 6,388.64, and the Nasdaq Composite reached a new high in nine of the past ten sessions, closing at 21,108.32 [2]. The Dow Jones Industrial Average advanced, driven by earnings optimism and updates on tariffs [4]. However, crypto stocks such as Coinbase (COIN), MicroStrategy (MSTR), and Marathon Digital (MARA) declined, with Coinbase dropping 1.27% and MicroStrategy falling 2.18% [1]. The divergence underscored shifting investor priorities amid macroeconomic and regulatory dynamics.

Bitcoin’s price retreated 1.66% to $116,805.28, influenced by large wallet movements and positioning ahead of the U.S. Federal Reserve’s policy meeting [6]. Ethereum, conversely, rose 1.59% to $3,692.93, offering a mixed signal for the crypto market [5]. The U.S. dollar’s strength against the Japanese yen—up 0.44% to 147.65—added pressure on crypto assets, which historically perform inversely to the currency [2]. Analysts attributed the crypto sector’s struggles to a stronger dollar and heightened caution ahead of central bank decisions [1].

Strategic reallocations further dampened crypto-linked stocks. Cathie Wood’s ARK Innovation ETF reduced exposure to crypto holdings, redirecting capital to traditional equities amid heightened volatility in digital assets [5]. MicroStrategy’s shares, which hold a significant stake in Bitcoin, fell over 2% in pre-market trading, reflecting broader uncertainty in the sector [3]. Michael Saylor, CEO of MicroStrategy, emphasized the company’s ongoing Bitcoin accumulation as a reserve asset, highlighting the complex interplay between crypto holdings and stock valuations [1].

The broader equity rally was fueled by strong corporate earnings and macroeconomic stability. The S&P 500 closed at a record high every day of the week, marking its 14th record close of the year [5], while the Nasdaq’s gains were driven by tech sector momentum [2]. However, crypto-linked equities diverged in performance, with Robinhood (HOOD) and PayPal (PYPL) showing mixed outcomes [1].

Regulatory scrutiny and technological developments continue to shape the crypto landscape. Coincu research noted that strategic Bitcoin investments remain a key driver for market participants, though regulatory environments and macroeconomic factors create headwinds [1]. The dollar’s firmness and cautious positioning ahead of central bank decisions amplified the sell-off in crypto-linked assets [1][2].

The gap between traditional equities and crypto stocks reflects evolving investor priorities. While the S&P 500’s record week signaled confidence in corporate earnings and economic resilience, the crypto sector faced challenges from macroeconomic tailwinds and regulatory uncertainty. With the Fed’s monetary policy outlook remaining a key variable, the split trajectory is expected to persist in the near term.

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[1] [S&P 500 clears 5th-straight record this week, Nasdaq hits ...](https://finance.yahoo.com/news/live/sp-500-clears-5th-straight-record-this-week-nasdaq-hits-fresh-high-as-earnings-trade-hopes-bolster-stocks-200226954.html)

[2] [Wall Street ends higher, dollar firms ahead of a big week ...](https://www.reuters.com/world/china/global-markets-wrapup-6-graphics-2025-07-25/)

[3] [Bitcoin Drops, Ethereum Gains: Crypto Market Liquidations ...](https://stocktwits.com/news-articles/markets/cryptocurrency/bitcoin-drops-ethereum-gains-crypto-market-liquidations-top-500-million-following-galaxy-digital-sell-off/chobb44R5vD)

[4] [Stock Market News, July 25, 2025: S&P 500 Wraps Week ...](https://www.wsj.com/livecoverage/stock-market-today-dow-sp500-nasdaq-07-25-2025?gaa_at=eafs&gaa_n=ASWzDAjblAleQ8oaGLmrYiEWX5zQmHnle7RTfpZKeW4RZok0gyzv563SN2yb&gaa_sig=G07okWKjbVZ07A9Ypkiuu6M168gadKcNnWO4qSXbNH6-QR-GzpXk5lTUEl6OZcBrxRDZBO8advuZqsAdcHXqWw%3D%3D&gaa_ts=6884357a)

[5] [Cathie Wood sells crypto stocks at the top to load up on ...](https://finance.yahoo.com/news/cathie-wood-sells-crypto-stocks-133854499.html)

[6] [Bitcoin price today: dips below $116k ahead of Fed meet, ...](https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-drops-below-116k-ahead-of-fed-meet-crypto-policy-report-4152447)