Bitcoin Targets $87K as S&P 500, Nasdaq Hit Record Highs

Bitcoin (BTC) continued to consolidate near $86,000 on Tuesday as US stock markets surged to fresh all-time highs, with the S&P 500 climbing 0.8% to 7,835 points and the Nasdaq Composite reaching 27,683. BTC/USD attempted to push toward $87,000 but faced persistent friction from concentrated ask liquidity clustered around that resistance level, according to TradingView data. CoinGlass order book data confirmed the largest concentration of sell-side liquidity sat near $87,000, capping near-term upside attempts.

Mosaic Asset Company analysts attributed the equity breakout partly to shifting expectations around Federal Reserve interest-rate policy, suggesting a more measured pace of rate hikes in Q4 2026 could fuel a durable rally. The Kobeissi Letter noted the S&P 500 has added 24%, or roughly $71.3 trillion in value, since March 30. Despite the record highs, Mosaic flagged concerning market breadth, with just 25% of S&P 500 stocks trading above their 50-day simple moving average last week, levels last seen in late March near correction territory. Tech-heavy names supplied most of the latest upside.

Onchain data from CryptoQuant revealed a modest but notable positive correlation between Bitcoin and the S&P 500, reaching 0.61 as of October 2, the strongest since early June. Technical analysts identified the 21-day simple moving average at $83,500 as the key nearby support level to watch if BTC fails to reclaim $87,000. With US equities breaking out and Bitcoin correlation strengthening, traders are monitoring whether BTC can follow risk assets higher or remain pinned below the overhead liquidity wall.