Bitcoin has fallen to $70,406 as of June 2, marking its lowest point in two months. The 24-hour decline of 3.97% signifies a notable retreat from its early May peaks of almost $80,000. Meanwhile, traditional equities such as the S&P 500 and Nasdaq have surged to record highs, further intensifying the divergence between the crypto and stock markets. BTC has experienced a decline of 44% from its all-time high of $126,198 recorded in October 2025, with its market capitalisation currently sitting at around $1.41 trillion. This drop comes on the heels of a robust performance in April, during which Bitcoin surged over 12%, marking its best monthly performance in a year.
This rally was fuelled by $2.5 billion in ETF inflows and a boost in risk sentiment. However, the bullish momentum waned in May, rendering Bitcoin susceptible to wider macroeconomic pressures. Andri Fauzan Adziima characterised the current divergence as significant yet not lasting. Bitcoin is trading more like a high-beta risk asset tied to macro sentiment rather than an independent hedge,” Adziima told. He added that while the gap reflects weakness, it also sets up potential for stronger relative performance once macro conditions stabilise. Analytics platform Santiment echoed this view, noting that the increasing preference for equities over crypto is creating a “self-reinforcing cycle.”
Investors are pursuing historically lower volatility and improved returns in stocks, especially with the S&P 500 reaching 7,600 points and the Nasdaq surpassing 27,000 points this week. “Markets often move opposite to the crowd’s expectations,” Santiment noted, suggesting that an overabundance of optimism in the stock market might signal an impending trend reversal. From a technical perspective, Bitcoin is nearing a significant resistance level at the 200-week exponential moving average, which is currently around $69,000. A breakdown below this level could intensify bearish sentiment, while a hold might prompt traders to re-enter long positions.
As the gap between Bitcoin and equities continues to make waves in the news, it’s crucial for traders to keep an eye out for potential catalysts that might spark a change in market sentiment. Macro factors like central bank policy, inflation data, and liquidity conditions continue to play a crucial role. Currently, Bitcoin’s vulnerability highlights its connection to risk assets; however, the cyclical dynamics of markets indicate that this period may not persist indefinitely.