Wall Street Surge Leaves Bitcoin Behind as S&P 500 Adds $2.1 Trillion

The S&P 500 has added $2.1 trillion in value over the past month, reaching a market capitalization of $70.5 trillion, while Bitcoin remains stuck in a narrow range around $64,600.

Analysts point to the divergence between Wall Street and crypto markets as a key factor holding back Bitcoin's price, with Adam Haeems of Tesseract Group noting that Bitcoin has little direct exposure to sectors driving the equity advance.

The crypto rally has been driven by demand for ETFs, but may need a new catalyst in the fourth quarter as markets seek regulatory clarity and stablecoin supply growth.

Falling oil prices and a return to normal traffic through the Strait of Hormuz could support risk assets, but Bitcoin's price is more dependent on inflation expectations and the Federal Reserve's decisions.