U.S. Exceptionalism Drives Nasdaq Surge, Influencing Bitcoin and the Dollar
The resurgence of U.S. exceptionalism could prove favorable for bitcoin and bolster the U.S. dollar amid shifting global economic conditions.
The belief that the U.S. economy and markets hold a unique and stronger position compared to the rest of the world has resurfaced, reflected in the robust performance of American equities.
Since the market downturn in early April, the tech-focused Nasdaq has jumped by 31%, while the S&P 500 has gained 24%, according to TradingView data. In contrast, other major global indexes—including Germany’s DAX, France’s CAC, Japan’s Nikkei, and China’s Shanghai Composite—have lagged behind Wall Street’s impressive rally.
On Thursday, both the Nasdaq and S&P 500 closed at all-time highs. At the same time, investor appetite for U.S. Treasuries remains solid, despite ongoing concerns about America’s fiscal health, as previously reported by CoinDesk.
These results challenge widespread fears that investors might be withdrawing capital from the U.S. due to the country’s debt situation, President Donald Trump’s trade disputes, and his criticisms of the Federal Reserve.
“Key factors supporting U.S. exceptionalism are still in place and may be growing even stronger,” noted Hani Redha, portfolio manager and head of global multi-asset strategy and research at PineBridge Investments, in a blog post last month.
Redha cited deregulation under Trump’s leadership as a significant factor behind the U.S.’s productivity growth, a trend not seen in other global economies.
Economic Data Reinforces U.S. Edge
Economic metrics continue to reinforce the argument for U.S. exceptionalism. One critical measure is real per capita GDP growth, which reflects the inflation-adjusted value of goods and services produced per person.
“The U.S. significantly outpaces the EU in real per capita GDP growth. The reasons are structural and remain unchanged. When it comes to growth, U.S. exceptionalism is here to stay,” said Robin Brooks, senior fellow in the Global Economy and Development program at the Brookings Institution, via X.
Additionally, new employment figures released on Thursday further confirmed the strength of the U.S. economy, as pointed out by Bruce J. Clark, head of rates at Informa Global Markets, on LinkedIn.
Potential Impacts on Bitcoin and the Dollar
This renewed confidence in U.S. exceptionalism may also positively affect bitcoin and broader crypto markets, considering bitcoin often mirrors movements in U.S. stock indices.
Bitcoin, the world’s largest cryptocurrency by market cap, has already climbed 44% to hit $108,000 after dipping to lows around $75,000 in early April, according to CoinDesk data. With a crypto-supportive administration in Washington, some analysts suggest bitcoin itself could be seen as a new aspect of American exceptionalism.
At the same time, the U.S. dollar may benefit from revived investor faith in American markets.
“Today’s jobs report delivers another blow to the idea that U.S. exceptionalism is fading, increasing the appeal of going long on the dollar for a counter-trend trade,” Clark commented, also noting that European Central Bank officials are becoming more cautious about the euro’s growing strength.
Earlier this week, the Financial Times reported that a senior ECB official warned the central bank might have to step in if the euro appreciates too much, potentially dragging inflation below target levels. Meanwhile, ECB Vice President Luis de Guindos told Bloomberg that an overly strong euro—particularly beyond the 1.20 mark—could present significant challenges.
U.S. exceptionalism remains a powerful force shaping both traditional financial markets and the emerging crypto landscape.
