Bitcoin rises 3% to $64,093 as S&P 500 slips 1%

Bitcoin rose 3 percent to $64,093 on Aug. 18, beating the S&P 500's 1 percent decline as the largest cryptocurrency diverged from U.S. equities.

"Bitcoin's resilience during the S&P 500's decline highlights its potential as a diversification tool, though volatility remains a significant risk," CryptoBriefing said in a market report.

The move came with 24-hour trading volume of $20.8 billion, according to Yahoo Finance data. Bitcoin remains well below its October 2025 all-time high near $126,000, and was down roughly 25 percent year to date as of March, according to Argus Research. The Block data showed Bitcoin at $64,078.90 as of Aug. 18, with Ethereum at $1,893.64.

The outperformance could strengthen the case for crypto as a diversification asset, potentially drawing more institutional capital into Bitcoin. Persistent volatility, however, could temper broader risk-on sentiment across digital assets.

Bitcoin's recent trading range has held support near $62,000, with the Aug. 16 low at $62,648.57, while resistance sits around $65,000, near the Aug. 17 high of $64,547.85. Polymarket data showed a 69 percent chance Bitcoin would hold above $64,000 on Aug. 18.

The divergence from equities comes as the broader crypto market remains in a prolonged drawdown since Bitcoin's October 2025 peak. Argus Research noted in a July market digest that Bitcoin, Ethereum, and Solana "remain in wicked bear markets" since their respective highs, with the U.S. dollar's trajectory and positioning data among the conditions needed for a new bull market.

The S&P 500's 1 percent decline on Aug. 18 follows a volatile stretch for U.S. equities, with the index up 9 percent in the first half of 2026 before concerns over AI valuations and a new Federal Reserve chairman weighed on sentiment, according to Argus Research. Bitcoin's relative strength during this period suggests some investors are rotating capital into digital assets as a hedge against equity market uncertainty.

For investors, the question is whether Bitcoin's relative strength marks the start of a decoupling from risk assets or a temporary reprieve within a broader downtrend. The next test comes as the Federal Reserve's September meeting approaches, with Polymarket pricing a 71.5 percent chance of no change to rates. A hawkish hold could pressure risk assets across the board, while a dovish surprise might provide the liquidity conditions Bitcoin needs to reclaim higher levels. A break above $65,000 on sustained volume would signal renewed upside momentum, while a loss of the $62,000 support could open the door to a retest of June lows near $58,000.

This article is for informational purposes only and does not constitute investment advice.