S&P 500 has added crypto's $2 trillion market cap this month. Bitcoin is not impressed. Here's why
Despite a record-breaking rally in the S&P 500 driven by AI and semiconductor stocks, Bitcoin has remained stagnant. Analysts suggest that the current market surge is sector-specific and lacks the broad macro-economic impulse typically required to lift crypto assets.
Why it matters
The decoupling of Bitcoin from traditional equity markets highlights shifting investor priorities and the specific catalysts currently driving Wall Street.
The S&P 500 has gained 3.12% this month, adding roughly $2.1 trillion in market cap and pushing its total value to a record $70.5 trillion, with its price at 7,723 points. The Nasdaq and Dow are buoyant too. Wall Street, by every measure, is in full risk-on mode.
Bitcoin isn't following suit, even though, since the COVID crash of early 2020, it has tended to track stocks more often than not. The token is up just 2% this month, trading around $64,600, sitting exactly where it's been gyrating for weeks.
Part of bitcoin’s underperformance stems from the fact that the equity rally is driven primarily by stock-specific narrative, particularly tied to AI, rather than by a broad macro risk-on impulse that would lift beta assets like BTC in tandem.
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