Bitcoin closes its best month in a year, but the S&P 500 steals the show

On May 1, 2026, Bitcoin (BTC) recorded its best monthly performance in a year, closing April up 12%. The price of BTC rose from $68,000 to $76,200, marking its strongest monthly gain since April 2025. Despite this rise, the digital asset was overshadowed by the S&P 500, which reached a new all-time high at 5,300 points, gaining 4.5% over the same period. This divergence between traditional markets and cryptocurrencies highlights the distinct dynamics currently driving investors. The facts Bitcoin saw a significant increase in April, with a gain of 12%, its best monthly performance since April 2025, when it had risen 15%. This performance was driven by record inflows into Bitcoin ETFs, which attracted $2 billion in net flows, an unprecedented level in 2026. At the same time, the S&P 500 reached a new historic peak, confirming the strength of traditional equity markets. The correlation between Bitcoin and the S&P 500 also weakened. The correlation coefficient fell from 0.3 in March to 0.1 in April, indicating a growing decorrelation between the two assets. This trend suggests that investors now view Bitcoin as an asset less tied to traditional economic fundamentals, offering potential diversification for portfolios. Why it matters Bitcoin's performance in April confirms its status as a speculative asset, strongly influenced by institutional flows and monetary expectations. The massive inflows into Bitcoin ETFs reflect growing interest from institutional investors, while the reduction in retail purchases, estimated at 15% according to Glassnode, indicates a shift in market behavior. Geopolitical tensions, notably the conflict in Ukraine, have limited appetite for risk, but have not prevented the S&P 500 from rising. This divergence highlights Bitcoin's ability to behave autonomously relative to equity markets, although its sensitivity to Fed decisions and ETF flows remains a key factor to watch. In the short term, this decorrelation could limit Bitcoin's gains in the event of an equity market correction, but it also offers a diversification opportunity for investors. What to watch The upcoming decisions of the U.S. Federal Reserve, notably at the meeting scheduled for June 12, 2026, which could influence both traditional and crypto markets. Bitcoin ETF flow data for May, which could confirm or refute the current trend in institutional inflows. Key technical levels for Bitcoin, with support at $70,000 and resistance at $80,000, which will determine the asset's trajectory in the weeks ahead. In summary, although Bitcoin posted a remarkable performance in April, it was the S&P 500 that captured market attention with its new record. This divergence underscores the importance of monitoring both macroeconomic dynamics and cryptocurrency-specific flows to anticipate future movements.