Major financial assets and the U.S. consumer are moving in opposite directions, telling two very different stories about the U.S. economy.
Bitcoin, the leading cryptocurrency by market value and a macro asset, surged 11.8% last month, the biggest gain since April 2025, and has since extended the rally by nearly 6% to $80,700, according to CoinDesk data.
This increase was accompanied by record risk-taking on Wall Street, the Nasdaq index, with a strong technological component, having jumped 22% since April 1, reaching a historic high of 23,235 points. The broader index, the S&P 500, rose more than 12% to 7,398 points, according to data source TradingView.
The combined rally in stocks and crypto should normally boost the morale of the American consumer, known for investing in both assets. Reports suggest that around 30% of American adults, or 70.4 million people, own cryptocurrency. Additionally, on average, 62% of adults have owned stocks since 2023.
But that’s not the case, as the closely watched University of Michigan consumer survey released Friday highlights. The survey released 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.
Simply put, the American consumer is more pessimistic than ever, and this is mainly due to inflation fears. A 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, COO at Bitget Wallet.
“Institutional capital continues to flow into AI, semiconductors and digital assets, pushing Nasdaq and Bitcoin higher as markets price in long-term productivity growth and technological transformation.
The boom in AI capital spending and strong earnings from mega-cap tech companies have spurred the Nasdaq’s rally, fueling demand for other emerging technologies such as bitcoin. U.S.-listed cash ETFs have raked in billions in recent weeks amid the Nasdaq rally.
“This divergence is driven by strong technology profits, sustained ETF and institutional flows into Bitcoin, as well as the growing role of digital assets as drivers of growth and diversification. It also shows how crypto is increasingly tied to macro-liquidity and innovation cycles rather than purely retail sentiment,” Kan said.
Bitcoin and Nasdaq are known to share a strong positive correlation. The crypto market began as a grassroots movement, often evolving independently of Wall Street and traditional financial markets. But the rapid institutionalization that followed the launch of cash ETFs two years ago has made price movements increasingly correlated with broader equity markets.
This shift in how investors view BTC, decoupling it from main street sentiment, is evidence of the fading promises of financial democratization, according to Markus Thielen, founder of 10x Research.
“The democratization of finance was once one of crypto’s defining promises, 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 U.S. stock market, where gains increasingly accrue to the richest participants,” Thielen told CoinDesk.
And then?
When rising costs weigh on households, it might seem natural to expect markets to align with the gloomy sentiment on Main Street. But it’s not necessarily promised.
“This gap is expected to persist,” said Gracy Chen, CEO of Bitget.
She added that digital assets are increasingly deviating from traditional cycles and attracting new capital seeking asymmetric returns, suggesting promising long-term structural growth.
“Although risks such as monetary policy tightening, geopolitical macroeconomic events or regulatory changes could add pressures in the short term. However, the emerging ecosystem is maturing and becoming an essential tool for diversification and active risk management in volatile markets,” she noted.
