U.S. Exceptionalism Boosts Stocks and Bitcoin Amid Global Market Lag

U.S. exceptionalism is showing renewed strength, as Wall Street's rally outpaces global markets. Since early April, the tech-heavy Nasdaq has soared 31%, while the S&P 500 has jumped 24%, according to TradingView data. In contrast, major indices like Germany’s DAX, France’s CAC, Japan’s Nikkei, and China’s Shanghai Composite have trailed behind.

This performance, alongside continued demand for U.S. Treasuries, challenges the widespread belief that capital is fleeing the U.S. due to debt concerns and political instability. PineBridge Investments' Hani Redha notes that structural advantages—such as deregulation and productivity gains—remain intact, reinforcing America’s economic lead.

Real per capita GDP growth further validates U.S. exceptionalism, with the U.S. significantly outperforming the EU. Robin Brooks of the Brookings Institution emphasized that this advantage is rooted in long-standing structural strengths.

Recent job data has also bolstered confidence, prompting analysts like Bruce J Clark from Informa Global Markets to argue that the idea of fading U.S. dominance is misguided. This robust economic outlook is fueling bullish sentiment not just for equities but also for cryptocurrencies.

Bitcoin, which often correlates with U.S. tech stocks, has rallied 44% from April lows, reaching over $108,000. With a crypto-friendly president in office, some argue BTC now reflects U.S. financial leadership.

Meanwhile, the resurgence of U.S. exceptionalism may also support the U.S. dollar. As the euro gains strength, European Central Bank officials are voicing concerns. ECB Vice President Luis de Guindos warned against the euro “overshooting,” with levels above 1.20 seen as problematic.

As global markets struggle, the U.S. economy's structural resilience continues to attract capital, lifting both the dollar and crypto assets like bitcoin.