Bitcoin loses status as main risk asset amid stock market lag

Bitcoin has shown minimal response to a 3.4% rise in the Nasdaq 100, subsequently falling more than US stocks the following day. Since the beginning of the year, Bitcoin has decreased by approximately 16%, while the S&P 500 has increased by 10%. Analysts attribute Bitcoin's changing behavior to increased competition for speculative capital and the rise of institutional trading strategies. Bitcoin is increasingly lagging behind the stock market, with over 1 billion USD in outflows from US spot ETFs over five trading sessions. The market dynamics at the start of the week highlighted this trend, as Bitcoin failed to react to renewed investor risk appetite. Market participants cite several reasons for the weakened demand for Bitcoin, including higher yields from alternative assets and the impact of significant liquidations in the crypto market. Speculative capital is not disappearing but shifting towards sectors like artificial intelligence, which remains attractive to investors. Noel Acheson from Crypto Is Macro Now believes Bitcoin is no longer the primary asset for high-risk investors, facing stiff competition from AI projects and small-cap companies. Institutional participation may also be influencing Bitcoin's volatility profile, as the spread of derivatives and complex hedging strategies smooths out sharp price fluctuations. Historically, Bitcoin has lagged behind the stock market during risk-averse periods, notably in 2018 and 2022. Current weakness raises additional concerns, as the trend began in 2025 when Bitcoin reached historical highs yet still underperformed against stocks.

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