Bloomberg: BTC's Risk-Asset Role Is Gradually Weakening, Underperforming S&P 500 by About 26 Percentage Points This Year

Nov. 11 — According to Bloomberg, bitcoin's linkage with traditional risk assets is weakening. Even as US tech stocks rebounded sharply, bitcoin failed to strengthen in tandem and performed even more weakly when the stock market subsequently pulled back, continuing to show low volatility and weak, range-bound trading. Data shows bitcoin is down about 16% year to date, while the S&P 500 is up about 10%; its performance has also lagged US stocks over the past month and the past six months.

Market analysts believe bitcoin is no longer the only representative high-risk asset, with AI-related investments and some small-cap stocks holding greater appeal for risk capital. In addition, the high-yield environment, the fallout from the previous large-scale liquidation in the crypto market, and Binance's record-breaking hack incident may all put pressure on demand for bitcoin. The current cautious sentiment in the market means bitcoin could face a new round of downside at any time.