Bitcoin is underperforming major asset classes despite global markets holding near record levels. The move underscores a growing disconnect between the cryptocurrency and both traditional risk assets and safe havens, according to new data from on-chain analytics firm CryptoQuant.
While gold and silver have surged to fresh all-time highs, Bitcoin remains roughly 30% below its peak. At the same time, U.S. equities continue to show resilience, with the S&P 500 trading within 1% of its record high and the Nasdaq about 3% below its own, signaling that broader risk appetite has not collapsed, says CryptoQuant.
Safe-Haven Demand Surges as Bitcoin Falls Behind
The company’s data shows gold trading approximately 25% above its 200-day moving average, while silver is nearly 45% above the same long-term trend line, the levels last seen during the 2020 COVID-era market shock.
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Bitcoin, however, has failed to benefit from this rotation. CryptoQuant notes that Bitcoin’s correlation with gold turned negative in July, while its correlation with the Nasdaq began diverging in August.
The shift suggests Bitcoin is no longer trading in sync with either hard assets or technology stocks, challenging its role as both a “digital gold” hedge and a high-beta risk asset.
Selling Pressure Weighs on Bitcoin Ahead of PCE Data
Rather than a demand collapse, the blockchain analytics point to sustained selling pressure from large market participants as the primary factor holding Bitcoin back.
Spot Bitcoin ETFs have recorded a $5.1 billion drawdown from their all-time high levels, while on-chain data indicates consistent whale selling since October.
Analysts say the upcoming U.S. Personal Consumption Expenditures (PCE) inflation data could prove decisive. A softer inflation print may reinforce expectations of a more dovish Federal Reserve, potentially easing financial conditions and restoring risk-on flows into Bitcoin.
Why This Matters
Bitcoin’s struggle to keep pace with stocks and precious metals shows how much institutional flows and broader economic trends are driving the market—and why upcoming inflation data could be a turning point.
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People Also Ask:
Gold is considered a “safe-haven” asset, while stocks represent risk-on investments. Comparing Bitcoin helps assess whether it behaves like a hedge, a speculative asset, or both.
Correlation measures how closely assets move together. A shift can indicate that Bitcoin is decoupling from equities or precious metals, affecting its role in diversified portfolios.
ETFs (Exchange-Traded Funds) are investment funds traded on stock exchanges. Bitcoin ETFs allow investors to gain exposure to Bitcoin without holding the cryptocurrency directly.
PCE (Personal Consumption Expenditures) measures inflation. Softer inflation may lead to a more dovish Federal Reserve, affecting liquidity, risk appetite, and demand for assets like Bitcoin.
A safe-haven asset maintains value or appreciates during economic uncertainty, providing protection against market volatility. Gold is a classic example.
