A new report from Bitfinex suggests that Bitcoin (BTC) market behavior continues to evolve, suggesting that recent trends are being treated as risk-on assets rather than traditional valuable reservoirs.
Bitcoin prices range from $91,000 to $102,000 for over 75 days, reflecting lower volatility and increased market stability.
The report highlighted the strengthening of the correlation between BTC and stocks. At the same time, the relationship with gold is weakening, suggesting the role of crypto as a risky asset rather than a valuable repository.
Furthermore, Bitfinex pointed out that Bitcoin remains sensitive to macroeconomic development He responds sharply to geopolitical events, including President Donald Trump’s recent challenges New tariffs in Mexico, Canada and China.
Risk-on assets
Despite its position as “digital gold,” Bitcoin does not reflect Gold’s recent rallies. The correlation between Bitcoin and the S&P 500 has been strengthened, but the correlation with gold has faded.
Bitcoin has yet to see a long-term institutional influx that has driven a surge in gold prices. Central banks, sovereign wealth funds and institutional investors have significantly increased their gold holdings amid economic uncertainty, but Bitcoin is driven primarily by speculative demand.
Spot Bitcoin Exchange-Traded Funds (ETFS) trading contributes to wider adoption, but these investment tools remain volatile.
The report noted that Bitcoin ETF collectively owns more than $116 billion in managed assets, equivalent to 6.08% of the total Bitcoin supply. However, ETF flows were inconsistent, with a massive outflow of $234.4 million and $140.2 million on another day last week.
In contrast, gold benefits from structural purchases as investors seek hedges against inflation, economic instability, and the impact of the Federal Reserve policy.
The Trump administration’s aggressive trade stance and continued fiscal expansion have further driven the institutional allocation of gold and solidified its role as a defensive asset. But uNLIKE GOLD, which benefits from defensive positioning, is still considered a high beta asset.
Furthermore, while Treasury yields have fallen, US trade wars and political uncertainty have increased risk premiums, contributing to the continued volatility of the stock market. Bitcoin’s price movement reflects these trends, further strengthening its status as a risk-on asset rather than a stable and valuable repository.
Long-term maturation
Nevertheless, Bitfinex has acknowledged that institutional benefits for Bitcoin are rising, with Bitcoin held by ETFs, Nation-States and public and private companies worth around $160 billion.
This suggests that Bitcoin’s role as a long-term hedge against inflation and currency devaluation is still evolving.
Additionally, the report reported that Bitcoin’s annual realised volatility reached an all-time low of 46%, indicating an increased maturity.
Macroeconomic headwinds could continue to affect Bitcoin in the short term, but its basic investment paper remains intact. Rising gold prices, increased institutional profits, and lower volatility could ultimately support Bitcoin’s transition to more established financial assets.
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