US Equities Rally to New Highs - Why Hasn’t Bitcoin Followed?

U.S. equities hit fresh all-time highs on AI and U.S.-China optimism, while Bitcoin remains range-bound around $80,000 — roughly 35–40% below its October 2025 peak. The divergence is attributed to a liquidity-constrained macro backdrop (CPI 3.8% YoY, PPI 6.0% YoY) and uncertainty around new Fed Chair Kevin Warsh. Spot Bitcoin ETFs saw a $635M single-day outflow on May 13 and $1.26B over five days, though flows partially rebounded. Institutional behavior is mixed: JPMorgan notably increased its IBIT stake (up 174% to 8.3M shares, ≈$390M), while perpetual futures show record net-short positioning and over $500M of longs liquidated near the 200-day MA (~$82k). The piece is market commentary: equities’ liquidity-driven rally has yet to translate into sustained crypto gains; Bitcoin could gap higher if a liquidity/catalyst emerges, but for now downside/sideways risk persists.