Bitcoin grinds toward $87K as US equities hit new record highs

Bitcoin (BTC) hovered around $86,000 on Tuesday as U.S. stock markets achieved new all-time highs. Data from TradingView indicated that BTC/USD was struggling to surpass $87,000 following a failed attempt on Monday. The S&P 500, Nasdaq 100, and Nasdaq Composite Index all reached fresh record highs of 7,835, 31,312, and 27,683 points respectively following the opening bell.

Trading resource The Kobeissi Letter attributed the stock market surge to a possible weakening of Federal Reserve interest-rate hike expectations in the fourth quarter of 2026. Mosaic Asset Company suggested a potential market rally due to this change in sentiment. However, stock breadth remained near its lowest in six months, with only 25% of stocks trading above their 50-day simple moving average.

Tech firms led the market's upward movement. Onchain analytics from CryptoQuant revealed a slight positive correlation between Bitcoin and the S&P 500 at 0.51, marking its highest level since early June. Despite facing resistance near range highs due to ask liquidity on exchange order books, Bitcoin's price action continued to display upward potential.

Keith Alan, co-founder of crypto trading suite Material Indicators, noted support at $83,500, Bitcoin's current 21-day SMA, and highlighted the possibility of breaking the $87,375 invalidation threshold of the Monthly signal. A successful retest of the Yearly Open at $87,496 would further support a durable move above $91,540, signaling the confirmation of a bull market.