Bitcoin Diverges Sharply from Record-High Equities

Bitcoin has fallen by about 30% year-to-date and remains 48% below its all-time high. This decline contrasts sharply with the record highs reached by global equities, such as the S&P 500 and Nasdaq, which have been fueled by strong corporate earnings and AI enthusiasm.

The usual favorable liquidity conditions that support cryptocurrencies are not enough to boost Bitcoin's price, partly due to miner selling pressure and options market dynamics.

This divergence challenges Bitcoin's role as a portfolio diversifier, as it has underperformed equities without providing a hedge during market gains.