Bitcoin has rallied 17% in Q2 but remains 35% below its $126,000 peak, facing resistance in the $80,000-$85,000 range. Despite improving risk sentiment, Bitcoin's price structure suggests consolidation rather than expansion. Meanwhile, U.S. equities are absorbing more capital, with the NASDAQ up over 22% and the S&P 500 reaching a record high of 7,400 on May 8. Over $10 trillion has flowed into U.S. equities in a month, overshadowing the $300 billion entering digital assets, which lifted the crypto market cap above $2.6 trillion.
This liquidity dominance in equities limits immediate crypto inflows, capping Bitcoin's near-term expansion. However, stronger Wall Street liquidity could support future Bitcoin accumulation by improving the capital-raising environment for corporate treasuries. The Stretch Index (STRC) reflects this dynamic, with strong institutional demand suggesting potential corporate Bitcoin buying. As STRC maintains strength, Bitcoin could still break above $85,000 despite current liquidity constraints.
Equity Market Inflows Outpace Bitcoin as $85k Resistance Holds
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