Bitcoin Drops to Two-Month Low Amid Growing Divergence from Stock Markets

ChainCatcher report, according to Cointelegraph, Bitcoin fell to its lowest level in nearly two months on Tuesday, as the divergence between cryptocurrencies and traditional stock markets continues to widen. Bitcoin dropped to as low as $70,023 on Coinbase, the lowest level since April 7, with a daily decline of over 4% and a weekly drop of 8%, representing a 44% decline from its October peak of $126,000. Meanwhile, the S&P 500 hit a record high above 7,600 on Monday, while the Nasdaq index surged past 27,000. Andri Fauzan Adziima, Research Director at Bitrue Institute, noted that Bitcoin is currently the only major asset in a downtrend, and this divergence is noteworthy, suggesting that Bitcoin behaves more like a high-beta risk asset tied to macro sentiment rather than an independent hedge. Santiment stated that the gap between traditional stocks and cryptocurrencies has become impossible to ignore, leading investors to increasingly favor stocks over Bitcoin and altcoins, with capital often shifting from crypto to equities. However, Santiment pointed out that this pattern will not last indefinitely; when mainstream influencers widely discuss stock market dominance, it often signals that market sentiment has become overly biased toward stocks, and market movements frequently move contrary to the majority of traders’ expectations.