Global stocks have been making new highs recently, but Bitcoin (BTC), the biggest cryptocurrency based on market capitalization, is trading at almost 42% below its lifetime highs.
This split has left crypto investors searching for answers, especially since the market has lumped the two asset classes together under the “risk-on” label.
Diverging Drivers Between Equities and Bitcoin
According to market researchers at XWIN Japan, the reason for the divergence is simple: stocks and BTC are running on “different engines.”
They noted that equity gains are tied to growth in AI-linked earnings, capital spending from firms like Nvidia, and share buybacks, as well as steady ETF inflows. As such, investors can point to profit growth that is real and visible.
However, Bitcoin does not carry earnings or cash flow, with its price depending on new capital entering the market, which leaves it more exposed to liquidity shifts.
Right now, per XWIN’s assessment, that capital isn’t arriving. R
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