Wall Street Laughs While Consumers Cry…The Truth Behind the Bitcoin Rally

▲ Bitcoin (BTC), Nasdaq (NASDAQ)/ChatGPT generated image ©

While Wall Street cheers, American consumers are growing increasingly anxious. An extreme divergence is appearing as Bitcoin (BTC) and Nasdaq soar to all-time highs, while U.S. consumer sentiment plummets to an all-time low.

According to investment media FXStreet on May 11 (local time), Bitcoin surged 11.8% over the past month and has since risen further to around $80,700. During the same period, the technology-heavy Nasdaq index exploded by 22% since April 1, reaching an all-time high of 23,235 points, and the S&P 500 also soared over 12% to 7,398 points.

However, the economic sentiment felt by American consumers is showing the opposite trend. The preliminary estimate of the University of Michigan Consumer Sentiment Index was recorded at 48.2 points, falling to an all-time low. This is 7.7% lower than last year. Respondents cited gasoline prices and tariff burdens as the biggest sources of anxiety. The media analyzed that American households are still struggling with inflation and cost-of-living pressures.

Experts diagnosed that the divergence between Wall Street and the real economy is deepening. Alvin Kan, COO of Bitget Wallet, explained, "As institutional funds continue to flow into AI, semiconductors, and digital assets, Nasdaq and Bitcoin are front-running long-term growth expectations. In contrast, ordinary households are still focused on current cost-of-living burdens and economic uncertainty." He assessed that while the market is trading the future, consumers are enduring present pain.

The inflow of institutional funds through Bitcoin spot ETFs is also fueling the upward trend. The media reported that billions of dollars have recently flowed into U.S.-listed Bitcoin spot ETFs, further stimulating demand for digital asset investment alongside the Nasdaq rally. It was particularly emphasized that Bitcoin is gradually transforming from an asset centered on individual investors to one focused on institutions. Markus Thielen of 10x Research pointed out, "Financial democratization was one of the core promises of cryptocurrency, but in the actual market, the concentration of wealth is only deepening."

However, experts believe that this divergence is likely to continue for some time. Gracie Chen, CEO of Bitget, assessed that digital assets are increasingly showing a different trend from traditional economic cycles, attracting new funds. At the same time, variables such as monetary policy tightening, geopolitical risks, and regulatory changes could increase short-term volatility, but in the long term, the digital asset market is gradually establishing itself as a mature investment asset class, she analyzed.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*