Reading the unusual divergence between bitcoin's rise and the U.S. stock market's decline through market structure
Price ActionDigital FinanceDigital Finance
In the U.S. market, bitcoin broke above 70,000 dollars and rose, while the S&P 500 and Nasdaq fell, producing an unusual divergence. Bitcoin saw a concentration of its own supportive factors: the U.S. Treasury's announcement of expanded long-term bond buybacks, a weaker dollar, expectations for clearer crypto asset regulation, inflows into ETFs, and a short squeeze. Meanwhile, the stock market was weighed down by high real interest rates, higher crude oil prices, elevated valuations in AI stocks, and concerns about consumption. Aggressive buying in the spot market has not yet been confirmed, and the focus going forward is whether bitcoin can break through the supply zone between 74,000 and 75,000 dollars, with ETF flows and spot demand following through.
