Bitcoin Moves With Tech, Not Precious Metals, Analysts Find

Bitcoin’s image as a steady store of value is being tested. What once was talked about as a hedge against uncertainty now moves more like a high-upside, high-risk bet.

That change in behavior has been noticeable since early 2024, when institutional flows and exchange-traded products pushed crypto into more mainstream hands.

Reports say investors who chase growth — many drawn by the AI story — have been selling software names hard, and Bitcoin has followed some of that pressure.

There has also been active selling from US-based accounts that left Bitcoin trading at a discount on some platforms. That selling happened after a string of big liquidations late in the year and again in recent weeks, which amplified losses for traders who used leverage.

From its peak above $126,000 in October, the market has pulled back by roughly 50% in several waves, which shows how quickly sentiment can turn against even the most talked-about crypto.

Traders who expected Bitcoin to act like a fortress against turmoil have found that, for now, it behaves more like an asset whose value rises on hope and falls when fear returns.

A return of fresh capital would likely be needed to steady prices. ETF inflows could help, and a renewed wave of retail buyers would too.

Research suggests that retail interest is currently focused on AI stories and growth narratives, which leaves crypto out of favor for many individual investors. That concentration of attention matters: capital flows are what lift or sink these markets.

Grayscale says Bitcoin’s recent moves mirror tech stocks, not gold, but its long-term potential as a store of value remains. Short-term swings reflect market integration and investor activity, while future performance will depend on capital flows and broader economic trends.

Featured image from ETF Trends, chart from TradingView