Why did Bitcoin fall to a two-month low?

Bitcoin dropped to around $70,000 as investors continued moving capital into US equities, which have been reaching record highs. The shift reflects stronger demand for stocks, particularly technology and AI-related companies, while crypto markets remain under pressure.

How much has Bitcoin fallen from its peak?

Bitcoin has declined about 44% from its reported October high of $126,000. The cryptocurrency also lost more than 8% over the past week and more than 4% in a single trading session.

Why are US stocks outperforming Bitcoin?

The S&P 500 and Nasdaq have reached record highs as investors favour large-cap technology and growth stocks. Strong corporate earnings, AI-related investment themes and lower volatility have made equities more attractive than crypto in the current market environment.

Is Bitcoin still acting as an inflation hedge or safe-haven asset?

Some analysts argue Bitcoin is currently behaving more like a high-risk growth asset than a hedge. According to Bitrue Research Institute's Andri Fauzan Adziima, Bitcoin's price action is increasingly tied to broader macroeconomic sentiment and risk appetite.

What does the divergence between stocks and crypto mean?

The divergence refers to stocks rising while cryptocurrencies fall. When investors see equities producing stronger returns with lower volatility, capital often shifts away from crypto and into traditional financial markets.

What is Santiment saying about the stock-versus-crypto trend?

Santiment believes the gap between equities and crypto has become increasingly noticeable. The analytics firm said investors are currently favouring stocks, but warned that extreme optimism toward equities and excessive pessimism toward crypto can sometimes precede market reversals.

Is this bearish for Bitcoin in the short term?

The current trend is negative for Bitcoin because it reflects weaker investor demand relative to equities. However, some analysts view the divergence as a temporary phase rather than a permanent shift in market leadership.

What is the significance of Bitcoin's 200-week EMA?

The 200-week exponential moving average is a major long-term technical indicator. Bitcoin is approaching this level near $69,000, which many traders consider an important support zone that could influence future price direction.

Cryptocurrency

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Bitcoin slides as stocks leave crypto behind

Written by Heidi Cuthbert Published Jun 2, 2026, 5:52 AM

Bitcoin dropped to its lowest level in nearly two months on Tuesday, extending losses as cryptocurrencies continued to lag behind a record-breaking rally in US equity markets.

The world's largest cryptocurrency fell to $70,023 on Coinbase, marking a decline of more than 4% on the day and an 8% loss over the past week, while remaining roughly 44% below its October peak of $126,000.

US equities moved in the opposite direction, with the S&P 500 reaching a record high above 7,600 and the Nasdaq climbing beyond 27,000 as investors continued to favour technology and growth stocks.

“It shows Bitcoin is trading more like a high-beta risk asset tied to macro sentiment rather than an independent hedge,”

Said Bitrue Research Institute Research Lead, Andri Fauzan Adziima.

Market intelligence platform Santiment said the widening performance gap between stocks and cryptocurrencies has become increasingly difficult for traders to ignore, encouraging capital to rotate from digital assets into equities that are delivering stronger returns with lower volatility.

Santiment warned that the trend could become self-reinforcing as more investors chase stock market gains, although it argued that extreme optimism toward equities and pessimism toward crypto can sometimes signal a future reversal.

Bitcoin is now approaching its 200-week exponential moving average near $69,000, a closely watched long-term technical level that traders may view as a key support zone if selling pressure continues.

At the time of reporting, Bitcoin price was $70,395.95.