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.