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 and macro asset by market capitalization, rose 11.8% last month, its biggest gain since April 2025, and has since expanded by nearly 6% to $80,700, according to CoinDesk data.
The gains come amid record risk-taking on Wall Street, with the tech-heavy Nasdaq index up 22% since April 1, hitting a record high of 23,235 points. The S&P 500 has risen 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 U.S. consumers, who are known to invest in both assets. Reports indicate that approximately 30% of U.S. adults, or 70.4 million people, own cryptocurrency. Additionally, since 2023, an average of 62% of adults own stocks.
But that’s not the case, a high-profile consumer survey released Friday by the University of Michigan underscores. The survey’s preliminary reading was 48.2 points, a record low and down 7.7% from a year earlier, extending a decline from April’s reading of 49.8 points.
Simply put, U.S. consumers are more pessimistic than ever, largely due to concerns about inflation. One-third of respondents cited gas prices as the biggest concern, and another third cited tariffs as the biggest concern.
Alvin Kan, chief operating officer of Bitget Wallet, said the growing disconnect between Wall Street and Main Street reflects two distinct economic realities.
“Institutional capital continues to flow into artificial intelligence, semiconductors and digital assets, driving the Nasdaq and Bitcoin higher as the market prices in long-term productivity growth and technological transformation. At the same time, consumer confidence remains weak as households continue to deal with inflation, high living costs and economic uncertainty. In effect, the market is trading the future while consumers remain focused on current financial pressures,” Kan told CoinDesk.
A boom in artificial intelligence capital spending and strong corporate earnings from Big Tech companies drove the Nasdaq higher, fueling demand for other emerging technologies like Bitcoin. U.S.-listed cash ETFs have attracted billions of dollars in recent weeks as the Nasdaq rose.
“This divergence was driven by strong tech gains, continued ETF and institutional inflows into Bitcoin, and the increasingly important role digital assets play in growth and diversification,” Kan said. “It also illustrates how cryptocurrencies are increasingly tied to macro liquidity and innovation cycles rather than pure retail sentiment.”
It is well known that Bitcoin and Nasdaq have a strong positive correlation. The cryptocurrency market began as a grassroots movement, often developing independently of Wall Street and traditional financial markets. But spot ETFs were quickly institutionalized after their introduction two years ago, making their price movements increasingly correlated with the broader stock market.
Markus Thielen, founder of 10x Research, said that the shift in the way investors view BTC, decoupling it from popular sentiment, is evidence that the prospects for financial democratization are fading.
“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 few, a trend even more pronounced in the U.S. stock market, where gains are increasingly concentrated among the wealthiest participants,” Thielen told CoinDesk.
What to do next?
When rising costs squeeze households, it seems natural to expect the market to fall in line with the subdued mood on the high street. But that’s not necessarily what’s promised.
“This gap is expected to persist,” Bitget CEO Gracy Chen said.
She added that digital assets are increasingly deviating from traditional cycles and attracting new capital seeking asymmetric returns, pointing to promising prospects for long-term structural growth.
“While risks such as monetary policy tightening, geopolitical macro events or regulatory shifts may increase short-term pressures. However, emerging ecosystems are maturing and becoming core tools for diversification and proactive risk management in volatile markets,” she noted.