BEARISH 📉 : Bitcoin trading mirrors growth stocks, loses safe-haven status

Bitcoin's Volatility: Bitcoin is increasingly behaving like a high-risk, high-reward asset rather than a stable store of value.

Growth Asset Signals

Grayscale reports that Bitcoin's trading patterns align more with tech stocks than traditional safe havens like gold.
This trend has been noticeable since early 2024, driven by institutional investments and exchange-traded products.
Selling pressure from investors focused on AI and tech has impacted Bitcoin prices.

Institutional Influence

Bitcoin's ties to traditional markets are deepening, with ETF mechanisms and institutional holdings affecting its price movements.
US-based accounts have actively sold off Bitcoin, creating discounts on some platforms following significant liquidations.

Current Price Levels: Bitcoin is trading around $66,900, with resistance at $69,900 and support below $66,600.

The market has retraced approximately 50% from its peak over $126,000 in October.

Comparison with Gold

Gold has reached new highs, diverging from Bitcoin, which hasn't attracted the same safe-haven flows.
Geopolitical tensions have pushed investments into metals, away from riskier assets like crypto.

Market Sentiment: Bitcoin's behavior reflects an asset influenced by hope and fear rather than a hedge against turmoil.

Fresh capital, possibly through ETF inflows or retail buying, could stabilize prices.
Retail focus is currently on AI and growth narratives, sidelining crypto for many individual investors.

Conclusion: While Bitcoin tracks tech stocks in the short term, its long-term potential as a store of value persists. Future performance hinges on capital flows and broader economic conditions.