S&P 500 Hits Record Levels, Is Bitcoin Price Falling Behind?

Key Insights:

• S&P 500 reaches a new all-time high of 6,305; Bitcoin holds steady near $117K.
• Correlation between S&P and Bitcoin rises to 0.72, reflecting stronger price alignment.
• While Bitcoin trails in returns, its movement mirrors Wall Street trends, showing macro-driven convergence.

The S&P 500 is a big equities-driven index that shows how the top 500 companies in the U.S. stock market are doing. On July 22, it hit a new record: 6,305 points. That means these companies, like Apple, Amazon, and others, are doing really well, and investors are super confident in them.

At the same time, Bitcoin is trading at around $117,000 to $118,000. It hasn’t moved much while stocks have zoomed up.

BTC and S&P 500: The Crossovers Matter

Over the last few months, Bitcoin and the S&P have taken turns leading each other. For example, in March, Bitcoin rose faster and went ahead of the S&P. And, in April, the the latter dropped while the cryptocurrency stayed steady.

Also, in late June, the S&P rose again and passed Bitcoin, despite BTC making new all-time highs.

These “crossovers” show when one market is doing better than the other. Right now, stocks are winning. But it doesn’t always stay that way. Crypto sometimes takes the lead again when people get excited or new tech drops.

Also, it is worth noting that Bitcoin did make an all-time high a while back, racing to $123,000 before cooling down. But then the chart might suggest that traditional stocks are doing slightly better.

Bitcoin and S&P 500 Still Moving Together?

Right now, the connection between Bitcoin and the S&P 500 is still pretty strong. The latest data shows a 30-day Pearson correlation of 0.72. That number tells us how closely the two move together. If it’s 1, they move exactly the same. If it’s 0, there’s no connection. If it’s -1, they move in opposite directions.

A 0.72 score means Bitcoin and stocks are still dancing to a similar beat, though not every step is in sync. When stocks rise, Bitcoin often follows. When they fall, Bitcoin usually slides too. But this wasn’t always the case.

Back in February 2025, the correlation between Bitcoin and the S&P actually went negative, dipping to around -0.125 at a time. That meant they were briefly moving in opposite directions.

Bitcoin was rallying, while stocks were still under pressure from high interest rates and recession fears. It was one of the rare times crypto felt like it was doing its own thing.

Another example came on November 4, 2024, when the 30-day correlation dropped sharply to just 0.16.

That was right around the time Bitcoin was climbing due to ETF optimism, while the S&P was flat because of mixed earnings results. It showed that sometimes, big crypto-specific news can break the usual link between the two markets.

If the correlation starts to fall again in the coming weeks, it could mean that Bitcoin is beginning to move more independently, driven by its own market forces instead of following Wall Street.

But for now, the data shows they’re still pretty well connected, even if the pace isn’t always perfect.

Why is the S&P up while BTC is flat?

There are a few reasons why the S&P 500 is booming:

• Big tech companies like Nvidia, Apple, and Tesla have been reporting strong earnings.
• Investors are hopeful that inflation (rising prices) is under control in the U.S.
• More people are putting money back into stocks after sitting out earlier this year.
• Bitcoin dominance is going down, and altcoins, including Ethereum, are seeing more capital inflows.

Is Wall Street stronger than crypto now?

If you look at momentum, Wall Street (through the S&P 500) is moving faster than Bitcoin. But that’s not the case if you consider other coins, or rather the altcoins.

But this doesn’t mean Bitcoin is done. Crypto often moves in big waves. Stocks might be getting love today, but Bitcoin could surge next week if something major happens, like a huge company starts accepting Bitcoin, or a new rule helps crypto go mainstream.

In short, Bitcoin may still be correlated to the S&P, but the rest of the crypto market is not and is moving at its own pace.

If you are only looking at Bitcoin, keep the following aspects in mind. If the S&P keeps rising, more money might flow into stocks and away from Bitcoin for now. Also, if Bitcoin breaks above $120K, it could flip the momentum back to crypto.

You might want to watch for news like U.S. crypto regulations or ETF approvals. These could give Bitcoin the spark it needs. And finally, if the correlation continues to push 1, you can infer that Bitcoin might slowly be becoming less volatile and a more reliable asset class.