Bitcoin Diverges from Stock Rally for First Time in a Decade, S&P 500 Surges 16%

Breaking News: Bitcoin Diverges from Stock Rally for First Time in a Decade Bitcoin has diverged from the stock market rally for the first time in a decade, with the digital asset down 3% in 2025, while the S&P 500 has climbed more than 16%. This dislocation marks a significant departure from past trends, where cryptocurrencies typically followed the performance of other risk assets. According to data compiled by Bloomberg, this is the first time since 2014 that stocks have rallied while Bitcoin has declined. The divergence has been building over the past few weeks, with Bitcoin's price falling to a low of $16,500 on December 1, while the S&P 500 continued to rise. The dislocation has sparked concerns among investors, with some attributing it to the lack of clear regulatory guidance on cryptocurrencies under the new administration. Others point to the increasing adoption of Bitcoin by institutional investors, which may be contributing to the divergence. The immediate impact of the divergence has been a surge in trading volumes, with Bitcoin's 24-hour trading volume reaching a high of $30 billion on December 4. This is a significant increase from the average daily trading volume of $10 billion. The increased volatility has also led to a rise in options trading, with the price of Bitcoin options reaching a high of $1,000. The divergence from the stock market rally is a significant development for the cryptocurrency market, which has been closely tied to the performance of other risk assets in the past. The lack of clear regulatory guidance and the increasing adoption of Bitcoin by institutional investors are likely to continue to shape the market in the coming weeks. As the market continues to navigate this new reality, investors are closely watching the price of Bitcoin, which is expected to continue to trade in a wide range. The S&P 500 is also expected to continue to rise, with some analysts predicting a further 10% increase in the coming months. The divergence between Bitcoin and the stock market rally is a significant development that is likely to have far-reaching implications for the cryptocurrency market.