Nasdaq’s Rally Underscores U.S. Exceptionalism, Driving Shifts in Bitcoin and Dollar Sentiment

The revival of U.S. exceptionalism is shaping markets and could offer fresh momentum for bitcoin and the U.S. dollar as global economic narratives evolve.

The concept of U.S. exceptionalism—the view that America’s economy and financial markets outperform those of other nations—is clearly evident again, judging by recent market moves.

Since the downturn in early April, the tech-driven Nasdaq has soared by 31%, while the S&P 500 has advanced 24%, according to data from TradingView. Meanwhile, key global indexes like Germany’s DAX, France’s CAC, Japan’s Nikkei, and China’s Shanghai Composite have all trailed behind the strong U.S. recovery.

On Thursday, the Nasdaq and S&P 500 both set new record highs. Simultaneously, investor demand for U.S. Treasuries has remained solid despite persistent worries about America’s fiscal outlook, as reported previously by CoinDesk.

These gains run counter to widespread expectations that capital might flee the U.S. amid concerns over rising national debt, President Donald Trump’s ongoing trade tensions, and his vocal criticism of the Federal Reserve.

“Many fundamental drivers of U.S. exceptionalism are still present and may even be getting stronger,” wrote Hani Redha, portfolio manager and head of global multi-asset strategy and research at PineBridge Investments, in a recent blog post.

Redha identified deregulation during Trump’s presidency as a key factor fueling a surge in U.S. productivity—an economic dynamic not mirrored in other major economies.

Economic Indicators Highlight U.S. Strength

Economic indicators continue to support the argument for U.S. exceptionalism. One crucial measure is real per capita GDP growth, reflecting inflation-adjusted output produced per person.

“The U.S. far outpaces the EU in real per capita GDP growth. The causes are structural and haven’t changed. U.S. exceptionalism—at least on the growth front—is here to stay,” said Robin Brooks, senior fellow in the Global Economy and Development program at the Brookings Institution, in a post on X.

Moreover, fresh U.S. employment data released Thursday added another piece of evidence of economic resilience, as highlighted by Bruce J. Clark, head of rates at Informa Global Markets, in a LinkedIn post.

Effects on Bitcoin and the Dollar

This renewed faith in U.S. exceptionalism could also influence bitcoin and broader crypto markets, given bitcoin’s history of tracking U.S. equity trends.

Bitcoin, the largest cryptocurrency by market capitalization, has already surged 44% to $108,000, rebounding from lows near $75,000 earlier in April, according to CoinDesk data. With a crypto-friendly administration in Washington, some analysts argue that bitcoin may increasingly be viewed as part of the broader U.S. exceptionalism narrative.

Simultaneously, a stronger sense of U.S. exceptionalism could lend support to the dollar.

“Today’s employment numbers further weaken the notion that American exceptionalism is fading, making the case for a counter-trend long-dollar trade increasingly appealing,” Clark observed, noting that European Central Bank officials are growing more cautious about euro appreciation.

Earlier this week, the Financial Times cited a senior ECB official warning that excessive euro gains could force intervention to prevent inflation from falling below target. Meanwhile, ECB Vice President Luis de Guindos told Bloomberg that an “overshooting” euro, especially above 1.20, could become problematic for the eurozone economy.

The resurgence of U.S. exceptionalism is shaping both traditional markets and the cryptocurrency sector, reinforcing America’s influence across the global financial landscape.