Bitcoin Lags Behind as U.S. Stock Market Hits Record Weekly Close and Dollar Index Turns Bullish

According to data shared by Crypto Rover, the S&P 500’s latest weekly candle surpassed previous peaks, marking a record-breaking close for U.S. equities. Meanwhile, Bitcoin’s price remains below its prior highs, suggesting the crypto market has yet to catch up with broader financial optimism.

Dollar Index Signals Renewed Strength

Fresh insights from 10x Research indicate that the U.S. Dollar Index (DXY) has entered a bullish phase, trading above both its 7-day and 30-day moving averages. The DXY saw a modest 0.1% gain over the past week, with analysts attributing the move to softer-than-expected September consumer price data, which reinforced expectations for a Federal Reserve rate cut later this year.

However, ongoing government shutdown delays in key data releases have capped the dollar’s upside momentum. Meanwhile, stronger-than-expected eurozone business activity and Japan’s easing inflation have provided balance in currency markets, keeping the DXY range-bound despite the bullish technical setup.

Consumer sentiment in the U.S. also climbed to a five-month high, adding minor support for the dollar.

S&P 500 Surges on Robust Earnings

10x Research’s report also highlighted that the S&P 500 remains firmly bullish, standing above both its short- and medium-term moving averages with a 1.8% weekly increase. The index’s rally was fueled by strong corporate earnings, notably from General Motors, which surged over 15% in a single session after beating expectations and raising guidance.

Apple’s record-breaking iPhone 17 sales added further momentum, lifting the Nasdaq and reinforcing market-wide optimism in the tech sector. Casino operator Las Vegas Sands also jumped 12% thanks to better-than-expected revenue from Macau and Singapore investments.

However, not all companies shared in the gains. Texas Instruments fell more than 5% after disappointing results and weak forward guidance, signaling that the market’s growth remains uneven.

Bitcoin Yet to Reflect Broader Market Optimism

While the S&P 500 reached new highs, Bitcoin has struggled to mirror the same strength. Charts shared by Crypto Rover show that Bitcoin’s price remains significantly below its prior resistance levels, highlighting a divergence between traditional equities and digital assets.

The lag comes despite favorable macro conditions such as easing inflation and a potentially weaker dollar – factors that have historically supported Bitcoin rallies. Analysts suggest that risk appetite has shifted toward equities amid strong corporate performance and improving investor sentiment, leaving crypto temporarily sidelined.

Still, many in the market believe Bitcoin could be gearing up for a delayed breakout if it can overcome key resistance levels, especially as institutional capital continues to flow into regulated crypto investment vehicles.

Market Outlook

With the dollar index firming, U.S. stocks at record highs, and Bitcoin consolidating below resistance, traders are closely watching for signals of capital rotation. A continued bullish environment in equities and a softer monetary stance by the Federal Reserve could eventually reignite interest in digital assets as the next leg of the market cycle unfolds.