Stock Rally Leaves Bitcoin Behind as S&P 500 Hits Record Market Value

The S&P 500 has gained 3.12% in August, adding $2.1 trillion to its market value and reaching a record $70.5 trillion. Bitcoin has only managed a 2% increase over the same period, stuck near $64,600.

Analysts point out that the stock rally is driven by AI and semiconductor stocks, areas where Bitcoin has little direct exposure. This limits the potential for crypto to benefit from the broader market trend.

Rising bond yields are also draining capital from the crypto market, with stablecoin supply shrinking as investors shift towards Treasuries. A recent exploit of Coldcard hardware wallets has drained an estimated $120 million, further pressuring sentiment.