Bitcoin, Nasdaq investors are celebrating, while U.S. consumers turn gloomy.

Major financial assets and the American consumer are moving in opposite directions, telling two very different stories about the U.S. economy.

Bitcoin, the leading cryptocurrency by market value and a macro asset, jumped 11.8% last month, the largest gain since April 2025 and has since extended the rally by nearly 6% to $80,700, CoinDesk data show.

This upswing has come alongside record risk-taking on Wall Street, as the tech-heavy Nasdaq index has jumped 22% since April 1, hitting a lifetime high of 23,235 points. The broader index, S&P 500, has rallied over 12% to 7,398 points, according to data source TradingView.

The combined rally in stocks and crypto is normally expected to lift the spirits of the American consumer, who is known to invest in both assets. Reports suggest approximately 30% of American adults, or 70.4 million people, own cryptocurrency. Further, on average, 62% of adults have owned stocks since 2023.

But that’s not the case, as highlighted by the University of Michigan’s closely watched survey of consumers released Friday. The survey posted a preliminary record-low reading of 48.2 points, down 7.7% from a year ago and extending the decline from April’s reading of 49.8 points.

In simple terms, the American consumer is more downbeat than ever, and it’s mainly due to inflation fears. One-third of respondents cited gas prices as the biggest concern, and another one-third cited tariffs.

The growing disconnect between Wall Street and Main Street reflects two very different economic realities, according to Alvin Kan, COO at Bitget Wallet.

“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. At the same time, consumer confidence remains weak as households continue dealing with inflation, high living costs, and economic uncertainty. In effect, markets are trading the future while consumers are still focused on present-day financial pressure,” Kan told CoinDesk.

An AI capex boom and strong corporate earnings from mega-cap tech companies have driven the Nasdaq rally, stoking demand for other emerging technologies such as bitcoin. The U.S.-listed spot ETFs have pulled in billions in recent weeks amid the Nasdaq rally.

“This divergence is being driven by strong tech earnings, sustained ETF and institutional inflows into Bitcoin, and the growing role of digital assets as both growth and diversification plays. It also shows how crypto is increasingly tied to macro liquidity and innovation cycles instead of purely retail sentiment,” Kan said.

Bitcoin and Nasdaq are known to share a strong positive correlation. The crypto market began as a grassroots movement, often moving independently of Wall Street and traditional financial markets. But the rapid institutionalization following the launch of spot ETFs two years ago has made its price action increasingly correlated with broader equity markets.

That shift in how investors view BTC, decoupling it from Main Street sentiment, is evidence of the fading promise of financial democratization, according to Markus Thielen, founder of 10x Research.

“The democratization of finance was once one of crypto’s defining promises, yet reality has moved in the opposite direction. Wealth remains heavily concentrated in the hands of a small minority, a trend that is even more pronounced in the US stock market, where gains have increasingly accrued to the wealthiest participants,” Thielen told CoinDesk.

What next?

When rising costs squeeze households, it may seem natural to expect markets to align with the dour sentiment on Main Street. But that’s not necessarily promised.

“This gap is expected to persist,” Gracy Chen, CEO of Bitget, said.

She added that digital assets are increasingly diverging from traditional cycles and attracting fresh capital seeking asymmetric returns, suggesting promising long-term structural growth.

“While risks such as monetary policy tightening, geopolitical macro events, or regulatory shifts could add near-term pressure. However, the emerging ecosystem is maturing and becoming a core tool for diversification and active risk management in volatile markets,” she noted.