U.S. stocks are having their moment again, and bitcoin, as it has all year, is sitting this one out. The reasons why go beyond the obvious.
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.
“Partly because the equity rally is being driven by areas to which bitcoin has little direct exposure, particularly AI and semiconductor stocks,” said Adam Haeems, head of asset management at Tesseract Group, which manages more than $500 million in client assets.
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