Bitcoin – Stocks Are at Records, So Why Is Bitcoin So Far Behind?

Bitcoin trades near $63,000 today, recovering about 7% from last week's low of $58,500. The trigger was the weak US jobs report. Only 57,000 new jobs in June means the Fed has less reason to raise interest rates soon, and when rate pressure eases, money flows back into riskier assets like crypto.

But step back, and the picture looks strange. The Dow just set a new record. The S&P 500 had its best first half in years. Bitcoin, meanwhile, trades at about half of its 2025 peak. Stocks and crypto used to rise together. Why did they separate？

One explanation is simple: investors have one pool of money, and right now the AI boom in stocks attracts most of it. Capital that used to flow into crypto now buys tech shares instead. Some analysts argue this gap won't last, and that money returns to crypto once the AI trade cools. Others warn the crypto market cycle has already turned down, and the weakness is normal.

For traders, the near-term driver is the Fed. The minutes from the last Fed meeting come out on Wednesday. Any sign that rate hikes are still on the table would pressure Bitcoin. More doubts about hikes would support it.

Bitcoin key levels:

• Resistance: $65,000, then $68,000

• Support: $60,000, then $58,500

Watching: Wednesday's Fed meeting minutes, the US dollar, whether money keeps rotating from tech stocks into other assets.

By Born2trade market research department

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