Bitcoin Shines Amidst AI Hype and Bear Market Blues
Bitcoin broke out of its recent slump on Monday, surging 2.6% to above $64K while the S&P 500 dropped 0.52%. This rare occurrence marked a turning point in the relationship between Bitcoin and traditional stocks.
Glassnode noted that this was the first time in weeks that Bitcoin clearly outperformed the S&P 500, which is unusual given its reputation as a higher-beta asset.
Bitcoin's supposed to be the more volatile option, moving bigger than stocks both up and down. However, over the past three months, it has lagged behind the S&P 500 two-thirds of the time, while getting left behind by AI hype in the market.
The problem is clear: the Magnificent Seven tech names have been hoovering up capital from anywhere else investors could deploy it, leaving crypto to suffer. Bitcoin's also stuck in a bear market phase of its four-year cycle, which is expected to bottom out sometime in October 2026.