Major financial assets and the American consumer are moving in opposite directions, telling two very different stories about the American economy.
Bitcoin, the leading cryptocurrency by market value and a macro asset, jumped 11.8% last month, the biggest gain since April 2025, and has since extended the rally by nearly 6% to $80,700, CoinDesk data shows.
This rally has been accompanied by record risk-taking on Wall Street, as the tech-heavy Nasdaq index has risen 22% since April 1, reaching an all-time high of 23,235 points. The broader index, the S&P 500, is up more than 12% to 7,398 points, according to data source TradingView.
The combined rally in stocks and cryptocurrencies is typically expected to lift the spirits of the American consumer, who is known to invest in both assets. Reports suggest that approximately 30% of American adults, or 70.4 million people, own cryptocurrencies. Additionally, on average, 62% of adults have owned stocks since 2023.
But that’s not the case, as highlighted by the University of Michigan consumer survey released Friday. The survey recorded a record preliminary reading of 48.2 points, down 7.7% from a year ago and extending the decline from April’s reading of 49.8 points.
In simple terms, the American consumer is more pessimistic than ever, and this is mainly due to inflation fears. One-third of respondents cited gas prices as the biggest concern, and another third cited tariffs.
The growing disconnect between Wall Street and Main Street reflects two very different economic realities, according to Alvin Kan, chief operating officer of Bitget Wallet.
“Institutional capital continues to flow into AI, semiconductors, and digital assets, driving the Nasdaq and Bitcoin higher as markets price in long-term productivity growth and technological transformation. At the same time, consumer confidence remains weak as households continue to grapple with inflation, high costs of living, and economic uncertainty. Indeed, markets are trading the future while consumers are still focused on current financial pressure,” Kan told CoinDesk.
A boom in AI capital spending and strong corporate earnings from mega-cap tech companies have fueled the Nasdaq’s rally, stoking demand for other emerging technologies like bitcoin. U.S.-listed spot ETFs have raised billions in recent weeks amid the Nasdaq’s rally.
“This divergence is being driven by strong tech gains, sustained ETF and institutional inflows into Bitcoin, and the growing role of digital assets as a growth and diversification play. It also shows how cryptocurrencies are increasingly tied to macro cycles of liquidity and innovation rather than purely retail sentiment,” Kan said.
Bitcoin and Nasdaq are known to share a strong positive correlation. The cryptocurrency market began as a grassroots movement, often moving independently of Wall Street and traditional financial markets. But rapid institutionalization following the launch of spot ETFs two years ago has made price action increasingly correlated with broader equity markets.
According to Markus Thielen, founder of 10x Research, that change in the way investors view BTC, decoupling it from main street sentiment, is evidence of the fading promise of financial democratization.
“The democratization of finance was once one of the defining promises of cryptocurrencies, but reality has moved in the opposite direction. Wealth remains heavily concentrated in the hands of a small minority, a trend that is even more pronounced in the US stock market, where profits have increasingly accrued to the wealthiest participants,” Thielen told CoinDesk.
What’s next?
When rising costs put pressure on households, it may seem natural to expect markets to align with the dour sentiment on the high street. But that’s not necessarily a promise.
“This gap is expected to persist,” said Gracy Chen, CEO of Bitget.
He added that digital assets are increasingly moving away from traditional cycles and attracting new capital seeking asymmetric returns, suggesting promising long-term structural growth.
“While risks such as monetary policy tightening, macropolitical geopolitical events or regulatory changes could add pressure in the short term, the emerging ecosystem is maturing and becoming a central tool for diversification and active risk management in volatile markets,” he noted.
