Bitcoin drops to two-month low as stocks rally

Bitcoin fell to $70,023 on Coinbase early Tuesday, its lowest level since April 7. The intraday low recorded by TradingView marked a drop of more than 4% on the day and left Bitcoin about 8% lower for the week.

The decline pushed Bitcoin further from its October peak near $126,000; the token is now roughly 44% below that high.

U.S. equity markets diverged from crypto: the S&P 500 topped about 7,600 and the Nasdaq passed 27,000, with major indexes reaching fresh records on Monday.

Andri Fauzan Adziima, research lead at Bitrue Research Institute, described the divergence as Bitcoin trading more like “a high-beta risk asset tied to macro sentiment rather than an independent hedge,” and said the weakness may be temporary and could set up stronger relative performance once macro conditions improve.

Analytics firm Santiment noted that “the gap between traditional equities and crypto has become increasingly difficult for traders to ignore,” and warned that sustained equity outperformance can lead capital to rotate out of crypto and into stock markets. Santiment added that heavy public discussion of stock dominance and negative crypto sentiment can indicate the crowd has moved too far toward “equity FOMO and crypto FUD,” a pattern that has reversed in past cycles.

On the technical side, Bitcoin is approaching the 200-week exponential moving average, near the $69,000 zone, a level traders watch as potential resistance for further downside or a pivot for renewed strength.

Market participants pointed to strong U.S. equity performance this month and broader macro sentiment as factors linked to flows into equities and reduced appetite for alternative assets such as Bitcoin and other cryptocurrencies.