Bitcoin has dropped to a near two-month low, exacerbating the divergence between the stock market and the crypto market.

On Tuesday, June 2, Bitcoin dipped to its lowest point since April 7, marking a more than 4% single-day slide and a roughly 8% cumulative drop over the past week. The crypto’s slump stands in sharp contrast to the U.S. stock market, which has been notching new all-time highs lately: the S&P 500 topped 7,600 points, while the Nasdaq broke through the 27,000 level—amplifying the growing trend divergence between cryptocurrencies and traditional risk assets. Andri Fauzan Adziima, research director at Bitrue Research Institute, notes Bitcoin is practically the only major asset class posting a meaningful pullback right now. The market is treating it as a high-beta risk asset driven by macro risk sentiment, not a standalone hedge tool, he explains. That said, Adziima argues this divergence is likely a cyclical blip—once the macro environment improves, Bitcoin should reclaim its relative strength. On-chain analytics firm Santiment points out the performance gap between traditional equities and crypto is impossible for investors to ignore. As U.S. stocks deliver stronger returns and lower volatility, some capital is flowing out of Bitcoin and altcoins into the stock market, creating a fund rotation effect. Still, the firm warns that when the market is gripped by "stock FOMO and crypto FUD", it signals overly lopsided expectations—and historical data shows markets often move opposite to what the majority of investors are betting on. From a technical standpoint, Bitcoin is closing in on its 200-week Exponential Moving Average (EMA), which sits around the $69,000 mark. This level has long been viewed as make-or-break support across crypto’s bull-bear cycles, so holding this key level will be the market’s top priority right now.