It’s getting harder for traders around the world to overlook the growing difference between traditional stocks and the cryptocurrency market.
During the past few weeks, the S&P 500 increased by 4%, but Bitcoin fell 13% and gold decreased by 5%.
AI mania driving tech
The stock market continued its climb and had a remarkably strong day on Monday. The S&P 500 reached a new record high during the day, hitting 7,617.66.
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The tech-heavy Nasdaq Composite similarly scaled new heights (mostly due to AI spending).
Shares of the iShares Expanded Tech-Software Sector ETF jumped 5% today, driven by strong gains in major companies like Salesforce, Adobe, Workday, and ServiceNow. Overall, software stocks have surged 14% in just three days – the biggest increase since October 2001.
The great capital rotation away from crypto
As an analyst, I’ve always watched Bitcoin and gold as primary safe-haven assets. But lately, I’m seeing a much larger flow of investment going into traditional stocks – they’re really dominating where the money is going right now.
Experts are observing that Bitcoin’s performance is lagging far behind that of the stock market. Some critics of cryptocurrency point out that the current high demand for AI stocks is surprisingly the main reason Bitcoin is still valued above $70,000.
More inflation fears
Despite the recent positive feelings in the market, I’m seeing some worrying signs in the overall economy. For example, we experienced a significant and unexpected disruption in global energy markets just yesterday.
The price of West Texas Intermediate crude oil rose sharply by about 6%, reaching almost $92 a barrel. Brent crude oil also increased significantly, jumping 5% to near $95 a barrel. These higher oil prices could lead to increased inflation.
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2026-06-02 00:33