Summary
- The S&P 500 has gained 3.12% this month, adding roughly $2.1 trillion in market cap – close to the entire crypto market’s total value.
- Bitcoin is up just 2% over the same stretch, trading around $64,600, a level it already touched back in July.
- Analysts point to a mix of reasons: an AI-concentrated stock rally, Bitcoin-specific headwinds like the Coldcard hack, and traders sitting out ahead of an expected October cycle bottom.
Why Bitcoin Remains Unimpressed by the S&P 500’s Recent Gains
The S&P 500 has added a significant $2.1 trillion in market cap this month, reaching a record $70.5 trillion, with its price at 7,723 points. This substantial growth has not, however, had a corresponding effect on bitcoin, which has only seen a 2% increase, trading around $64,600. This underperformance is notable, especially given bitcoin‘s tendency to track stocks since the COVID crash of early 2020.
The reason for this divergence lies in the nature of the current equity rally, which is driven by stock-specific narratives, particularly those related to AI, rather than a broad macro risk-on impulse. As a result, bitcoin is not experiencing the same level of uplift as the S&P 500. This is also due to bitcoin‘s limited direct exposure to areas like AI and semiconductor stocks, which are currently driving the equity rally.
Implications for Earning and Passive Income
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“Partly because the equity rally is being driven by areas to which bitcoin has little direct exposure, particularly AI and semiconductor stocks,” said Adam Haeems, head of asset management at Tesseract Group, which manages more than $500 million in client assets.
