S&P 500 Erased All 2026 Losses in One Week — Is Now the Time to Rotate Out of Crypto?

# S&P 500 Erased All 2026 Losses in One Week — Is Now the Time to Rotate Out of Crypto?

> **Quick answer:** The S&P 500 hit a new all-time high of 7,126 on April 17, 2026, recovering from a 7% year-to-date loss in a single week. Bitcoin is still down 19% YTD, Ethereum down 27%. The rotation case is real — but so is the trap: at a forward P/E of 20.9 versus a 25-year average of 16.3, this is the most expensive S&P relief rally in a generation. The right answer depends less on the market and more on your personal risk psychology.

In early April 2026, the S&P 500 was down 7% on the year and crypto holders were, for once, not the most anxious people in the room. Then the Iran ceasefire hit, oil collapsed 13% in a week, earnings season came in hot, and the S&P 500 did something almost nobody predicted: it erased all of its 2026 losses in a single week and closed April 17 at a new all-time high of 7,126. Meanwhile, Bitcoin is still down 19% year-to-date. Ethereum is down 27%. XRP, which briefly ran 20% in January, has given most of it back and sits near $1.36, more than 40% below its January peak of $2.42.

The question burning through every investing forum and group chat right now: **is it time to rotate out of crypto and into the S&P 500?**

The answer is not simple — and how you answer it reveals more about your investor psychology than about the market.

*This article is for informational purposes only and does not constitute financial advice. Consult a qualified financial advisor for personal financial decisions.*