CoinDesk
Bitcoin jumped 11.8% last month — its largest gain since April 2025 — and has since extended the rally by nearly 6% to $80,700, according to CoinDesk data. The move has tracked a record run on Wall Street: the tech-heavy Nasdaq has climbed 22% since April 1 to a lifetime high of 23,235 points, while the S&P 500 has rallied over 12% to 7,398.
That rally is happening while the American consumer is more downbeat than at any point on record. The University of Michigan's preliminary sentiment index fell to 48.2 points on Friday, down 7.7% year-over-year and below April's 49.8 reading. One-third of respondents cited gas prices as their biggest concern, another one-third cited tariffs.
Why it matters
Roughly 30% of American adults — about 70.4 million people — own crypto, and 62% have owned stocks since 2023. Historically that overlap meant a rally in risk assets lifted household mood. It isn't lifting it now.
The split reflects two different economies: an institutional one priced around AI capex, mega-cap tech earnings, and spot ETF flows, and a Main Street one still anchored to inflation, gas prices, and tariffs. "Institutional capital continues flowing into AI, semiconductors, and digital assets, pushing the Nasdaq and Bitcoin higher as markets price in long-term productivity growth and technological transformation," Bitget Wallet COO Alvin Kan told CoinDesk. "At the same time, consumer confidence remains weak as households continue dealing with inflation, high living costs, and economic uncertainty."
Market impact
The divergence is the latest evidence of how the spot ETF complex has rewired BTC's demand base. U.S.-listed spot bitcoin ETFs have pulled in billions in recent weeks alongside the Nasdaq rally, and Gracy Chen, CEO of Bitget, expects the gap with consumer sentiment to persist: "digital assets are increasingly diverging from traditional cycles and attracting fresh capital seeking asymmetric returns."
Not everyone reads that as a clean positive. Markus Thielen, founder of 10x Research, framed the institutionalization as a retreat from crypto's founding promise.
Frequently asked questions
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How much has Bitcoin rallied and where is its price now?
Bitcoin jumped 11.8% last month — its largest gain since April 2025 — and has since extended the rally by nearly 6% to $80,700, according to CoinDesk data.
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What did the University of Michigan consumer sentiment index show?
The preliminary reading fell to 48.2 points on Friday, down 7.7% year-over-year and below April's 49.8 — a record low. One-third of respondents cited gas prices, another one-third cited tariffs.
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Why are Bitcoin and the Nasdaq rallying while consumers feel gloomy?
Institutional capital is flowing into AI, semiconductors, and digital assets on long-term productivity narratives, while households remain anchored to inflation, gas prices, and tariffs. The two audiences are pricing different economies.
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How are spot bitcoin ETFs contributing to the rally?
U.S.-listed spot bitcoin ETFs have pulled in billions in recent weeks alongside the Nasdaq run, adding a structural bid that is now more important to BTC's price action than retail sentiment.
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Could the Wall Street / Main Street gap close?
Bitget CEO Gracy Chen expects the divergence to persist, with digital assets increasingly tracking macro liquidity and innovation cycles rather than household mood. Near-term risks include monetary tightening, geopolitics, and regulatory shifts.
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