Bitcoin near 87K as US equities reach record highs

Bitcoin (BTC) hovered around $86,000 on Tuesday, struggling to break past the $87,000 mark due to significant ask liquidity at that level. Meanwhile, US stock markets reached new record highs, with the S&P 500 Index climbing 0.8% to 7,835 points. The S&P 500, Nasdaq 100, and Nasdaq Composite Index all hit new all-time highs, with the latter two reaching 31,312 and 27,683 points, respectively.

Analysts noted that the S&P 500 has surged by 24% since March 30, adding $71.3 trillion in value. Mosaic Asset Company suggested that cooling expectations of interest-rate hikes by the Federal Reserve in late 2026 could further propel market gains. However, they cautioned that stock-market breadth remains near its lowest levels in six months, with just 25% of stocks trading above their 50-day simple moving average (SMA).

Bitcoin's price action showed a modest positive correlation with the S&P 500, currently at 0.51 as of October 2. The cryptocurrency faced resistance near $87,000, with a concentration of liquidity around that level. Support was identified at $83,500, Bitcoin's current 21-day SMA. Analyst Keith Alan highlighted the importance of monitoring price behavior around this support level and the potential for a durable move above $91,540 if key thresholds are cleared.

Overall, while Bitcoin continues to show strength, its upward momentum is capped by liquidity challenges and broader market dynamics. The interplay between crypto and traditional equities remains a key focus for investors.