Crypto Market Stagnates Amidst Equities' Euphoria and September Seasonality

US stock market sentiment reaches euphoric levels, with the Bank of America's Global Equity Risk-Love indicator hitting 1.4, its highest in 13 months. Bitcoin and Ethereum remain flat over the past week despite recent equity gains. Traders are cautious due to September seasonality and jobs data.

US stock market sentiment has reached euphoric levels, as indicated by the Bank of America's Global Equity Risk-Love indicator, which surged to 1.4, its highest level in 13 months. This metric, which aggregates data on investors' positioning, put-call ratios, investor surveys, price technicals, and volatility, signals a surge in market euphoria [1].

Despite the positive equity sentiment, Bitcoin (BTC) and Ethereum (ETH) have remained relatively flat over the past week. Traders are cautious due to the September seasonality and upcoming jobs data releases, which could influence market sentiment [1].

The jump in the Global Equity Risk-Love indicator reflects a broader shift towards risk-on behavior among investors, driven by factors such as improved economic outlooks, lower interest rates, and strong corporate earnings. This euphoria is likely to spill over into cryptocurrencies, as historical data shows that when equity sentiment reaches such peaks, it often correlates with movements in digital assets like BTC and ETH [1].

Recent on-chain data reveals increased activity in major crypto pairs, such as BTC/USD, with higher institutional inflows. If the equity love persists, resistance levels for BTC around $60,000 could be tested, offering buy opportunities on dips supported by positive market sentiment [1].

However, traders should remain vigilant, as the indicator also suggests potential short-term pullbacks. If equity euphoria wanes, crypto markets could see correlated corrections, making options strategies like protective puts on BTC a prudent hedge [1].

References:
[1] BofA Global Equity Risk-Love Indicator Jumps to 1.4, 13-Month High Signals Euphoria and Trading Implications for Crypto | Flash News Detail | Blockchain.News Latest Update 9/1/2025 11:52:00 PM. Retrieved from [https://blockchain.news/flashnews/bofa-global-equity-risk-love-indicator-jumps-to-1-4-13-month-high-signals-euphoria-and-trading-implications-for-crypto](https://blockchain.news/flashnews/bofa-global-equity-risk-love-indicator-jumps-to-1-4-13-month-high-signals-euphoria-and-trading-implications-for-crypto)