AI Stock Rally Leaves Bitcoin Behind

The S&P 500 and Bitcoin are often grouped as risk assets, but their performance can diverge when capital is chasing different catalysts. US equities have been lifted by Nvidia and other artificial-intelligence-linked companies, alongside optimism over corporate earnings. Bitcoin, meanwhile, is still absorbing the effects of its April halving, shifts in spot ETF demand and crypto-specific risks, leaving it less responsive to Wall Street’s AI-driven rally.

As of June 20, 2024, the S&P 500 had added about $2.1 trillion in market value during the month, roughly matching the size of the entire cryptocurrency market, while Bitcoin gained only about 2%. Traders also faced uncertainty over 142,000 Bitcoin tied to repayments from Mt. Gox, the exchange hacked in 2014. The prospect of fresh supply, combined with investors waiting for another catalyst, restrained the cryptocurrency’s advance.