What Does Divergence From Stocks Mean?
Much has been made of bitcoin’s underperformance to gold — which Tuesday hit yet another in a long series of records, crossing above $3,800 per ounce for the first time. But gold isn’t the only asset partying while bitcoin stagnates under $115,000.
U.S. stocks have also been notching record highs on what seems to be a daily basis, including bellwether S&P 500 index, which is perched just below the 6,700 level.
Even with BTC struggling of late, the world’s largest crypto remains in a bull market and this isn’t the first time this cycle its performance has diverged from that of the S&P 500.
The first divergence occurred between March and July of 2024. During this period, the S&P 500 climbed from around 4,000 to 4,600, while bitcoin…
