Bitcoin Fails to Keep Pace with S&P 500 Rally Amid Sector-Specific Gains

The S&P 500 has gained 3.12% this month, adding $2.1 trillion in market cap and pushing its total value to a record $70.5 trillion, while Bitcoin is up just 2% over the same stretch, trading near $64,600.

Adam Haeems, head of asset management at Tesseract Group, attributes this divergence to the fact that the equity rally is being driven by areas to which bitcoin has little direct exposure, particularly AI and semiconductor stocks.

Rising bond yields are also pulling capital out of crypto, with USDT's supply falling to its lowest level since 2025. Additionally, traders are waiting for a potential bottom in early October, tied to Bitcoin's four-year halving cycle.