S&P 500 Crushes Bitcoin Despite $2T Gain
The S&P 500 has seen a significant gain of approximately $2.1 trillion this month, but Bitcoin's price remains stagnant at $64,600, barely up 2%.
This disconnect between stocks and Bitcoin is noteworthy because it indicates that the correlation between crypto and equities may be broken.
The current stock rally is driven by specific sectors such as AI and semiconductors, which Bitcoin has little exposure to. Adam Haeems from Tesseract Group noted that 'The equity rally is being driven by areas to which bitcoin has little direct exposure, particularly AI and semiconductor stocks.'
Crypto faces its own challenges, including the recent Coldcard exploit that dumped $120 million on the market and a decline in USDT supply. Wintermute pointed out that any ETF buying this month was likely arbitrage rather than real directional buying.