Whalesbook
Consumer Confidence Plunges to New Low
The University of Michigan's consumer sentiment survey showed a preliminary reading of 48.2. This is a record low, down 7.7% from last year and a drop from April's 49.8. Inflation is the main worry for consumers. One-third cited rising gas prices, while another third pointed to tariffs.
Markets Rally on Tech and AI Boom
On Wall Street, the outlook is far more optimistic. The Nasdaq Composite, heavily weighted in technology, has climbed 22% since April 1 and reached an all-time high of 23,235 points. Bitcoin has also seen strong gains, jumping 11.8% last month and rising nearly 6% to $80,700. The S&P 500 index added over 12%, reaching 7,398 points. These market gains are driven by heavy investment in AI and strong results from major technology companies.
Why Markets and Consumers Are Moving Apart
Alvin Kan, COO at Bitget Wallet, explained this gap by pointing to different forces at play. He noted that institutional money is flowing into AI, semiconductors, and digital assets. This is driving up indices like the Nasdaq and Bitcoin as investors bet on future growth. Meanwhile, consumers are dealing with ongoing inflation, high costs of living, and economic uncertainty. "Markets are trading the future while consumers are still focused on present-day financial pressure," Kan said.
Concerns Over Wealth Concentration
The growing link between Bitcoin and stock markets, boosted by spot ETFs and institutional investment, is changing how crypto is viewed. Markus Thielen, founder of 10x Research, believes this institutional trend moves away from crypto's original aim of making finance more accessible to everyone. "Wealth remains heavily concentrated in the hands of a small minority," he noted, a pattern that is also very visible in the U.S. stock market. Gracy Chen, CEO of Bitget, expects this divide to continue. Digital assets are attracting money looking for returns, although she pointed out risks from changes in monetary policy or regulations.