S&P 500 rises 3.12% in August, outpacing Bitcoin's 2% gain amid AI stock rally and crypto challenges.

In August, the S&P 500 surged 3.12%, adding about $2.1 trillion in market value, driven mainly by AI and semiconductor stocks. Bitcoin, however, gained only 2%, trading near $64,600, as it lacks exposure to these sectors and faces additional pressures like a $120 million Coldcard wallet exploit and shrinking stablecoin supply. Rising bond yields are pulling capital away from crypto toward safer Treasury assets. Traders are also waiting for a potential Bitcoin bottom in October, linked to its four-year halving cycle, while ETF flows show mixed signals. A sustained Bitcoin price above $66,200 could open the path to higher targets around $72,000 to $74,000.