Bitcoin lags as global equities reach record highs

Global stock markets are having a moment. The S&P 500 has pushed into record territory, trading between 7,600 and 7,763, while the Nasdaq is clocking double-digit gains in 2026 on the back of strong tech earnings and AI enthusiasm. Bitcoin, meanwhile, is sitting in the mid-$60,000s, down roughly 30% year-to-date and about 48% below its October 2025 all-time high above $126,000. The rally in global equities has a fairly legible storyline behind it. Corporate earnings have held up, geopolitical risk has dialed back with easing tensions around U.S.-Iran relations, and AI-driven tech names continue to attract capital. On top of that, global M2 money supply has climbed to approximately $135 trillion. More liquidity sloshing around the system is historically good for risk assets, including crypto. That is what makes Bitcoin’s performance so puzzling right now: the liquidity conditions that tend to lift it are present, but the price is not responding. The Nasdaq’s double-digit gains in parts of 2026 stand in stark contrast to Bitcoin’s roughly 33% decline over the same period. The correlation between Bitcoin and the S&P 500 has typically exceeded 70%, making the current divergence...