Bitcoin (BTC USD vs S&P 500: Bitcoin (BTC USD) lags S&P 500 for first time since 2014 as AI stocks lead 2025 rally – gold and silver also gain
Crypto Expectations Are Fading: Bitcoin (BTC) Lags While S&P 500 Posts Strong 2025 Rally
The decline occurred at a time when expectations were high. Many in the industry believed that cryptocurrencies would benefit from US president Donald Trump’s return to the White House, predicting friendlier regulations and increased institutional participation. Instead, Bitcoin is facing one of its sharpest pullbacks in years.
Bitcoin, which hit a record high above $125,000 earlier this year, has disintegrated in a two-month decline due to billions of dollars in forced liquidations and waning retail enthusiasm. The token briefly fell almost 30% below its peak, to around $85,000, before rising back above $90,000 on Tuesday and falling back to $89,000 on Friday.
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AI Stocks, Gold and Silver Attract Investors
This shift is particularly notable given what’s happening elsewhere in the market. AI stocks are soaring, capital spending is rising, and stocks are attracting strong inflows. Meanwhile, gold and silver are approaching record levels; This is a sign that investors are finding opportunities outside the crypto space, according to the Bloomberg report.
Precious Metals Draw Momentum from Bitcoin (BTC USD)
Matt Maley, chief market strategist at Miller Tabak + Co, told Bloomberg: “Bitcoin is a momentum-based asset. For most of the last decade, when momentum has been in a strong uptrend, Bitcoin has led the way. Precious metals have stolen much of the usual momentum money flow from Bitcoin this year.”
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ETF Inflows Slow as Bitcoin’s Momentum Weaks
The mood in the crypto industry reflects this shift. ETF inflows have slowed, once-loud endorsements have faded, and indicators like the token’s daily highs suggest that belief is weakening. This year’s run lasted just three sessions; This was the shortest of any year in which Bitcoin reached new highs.
Analyst Says Bitcoin Pullback Could Be a Normal Bull Market Pause
Still, not everyone sees the slowdown as a sign of a deeper problem. “The timing of the calendar year also potentially skews this metric. As of early October, Bitcoin has substantially outperformed the S&P 500 on a trailing 12-month basis,” said Stephane Ouellette, CEO and co-founder of FRNT Financial Inc. in Toronto.
FAQ
Has Bitcoin recovered after the last crash?
It rose above $90,000 at the beginning of the week but fell back to $89,000 on Friday.
What caused Bitcoin’s sharp decline?
Multibillion-dollar forced liquidations and waning retail enthusiasm triggered a two-month decline.
