Bitcoin, broader market fail to keep pace as global equities hit record highs
Global equities reached record highs, but Bitcoin and the broader crypto market have struggled to keep pace due to capital rotation into AI-linked assets. Analysts note that institutional interest in crypto has cooled as AI dominates market attention.
Why it matters
The divergence between traditional stock market performance and crypto highlights how AI investment is currently absorbing capital that might otherwise flow into digital assets.
MSCI's All Country World Index rose 0.4% toward another record close, its Asia Pacific benchmark gained 2.2%, and Australian shares hit a new peak after the S&P 500 and Dow Jones Industrial Average closed at all-time highs Tuesday.
The broader CoinDesk 20 ( CD20 ) is unchanged since midnight, with 11 components rising and nine declining.
The divergence points to crypto-specific weakness. U.S. spot bitcoin ETFs recorded $5.4 billion of net outflows in the first half of the year as capital rotated into AI-linked assets.
“Institutional and retail interest in crypto as an investment has cooled as AI absorbs a disproportionate share of capital and attention; most sectors, not just crypto, have underperformed AI over the past year,” DWF Labs wrote in a report .
Today’s direction may find a catalyst in U.S. employment figures and ISM services PMI due later.
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