This week, the S&P 500 index reached a new record, but Bitcoin showed an opposite trend.
S&P 500 Records
The S&P 500 index closed above 6,175 points, shrugging off some mixed economic signals. However, the rise in the stock market did not reflect on Bitcoin, which slipped lower throughout the day.
Bitcoin's Status
Latest Core PCE data showed inflation rising by 0.2% month-on-month, slightly above April's figure. Real disposable income dropped by 0.7%, and real consumption fell by 0.3%, indicating weakening purchasing power. Despite the stock market's growth from technology, industry, and retail sectors, Bitcoin did not react positively and continued its downward trend.
Future of Stock and Crypto Relationships
Despite equities rising, spot interest in Bitcoin remained soft, while futures volumes spiked significantly. This suggests that the recent rise may have been more about positional play than genuine conviction. In the short term, traders may have to rethink how they view the connections between cryptocurrencies and risk assets.
The current market situation demonstrates a clear disconnect between the S&P 500 index and Bitcoin, but it is too early to declare whether this is a new trend or a temporary hiccup.
