Bitcoin’s momentum has weakened significantly, recording a 16% monthly decline while the S&P 500 gained 5%. The cryptocurrency’s price fell to $63,888, and the Fear & Greed Index dropped to 11, indicating extreme fear among investors. On-chain data from CryptoQuant’s head of research, Julio Moreno, shows a demand contraction of 232,000 BTC. Analyst Jim Ferraioli from Charles Schwab attributes the underperformance to Bitcoin losing its momentum-trade appeal as capital rotates into equities and commodities.
Bitcoin has posted a monthly decline of over 16%, sharply underperforming the S&P 500’s approximate 5% gain. Capital rotation is growing, with funds moving toward AI stocks, gold, and industrial commodities instead of digital assets.
Charles Schwab analyst Jim Ferraioli believes Bitcoin’s weakness relates more to diminishing momentum trade appeal than minor sales. Currently, the macro environment is driving changes in market behavior, with capital moving into equities, commodities, and alternative assets, not just in the digital asset sector, but in traditional finance as well, he stated.
Bitcoin sentiment has turned negative as the Fear & Greed Index dropped to 11, representing extreme fear. These readings typically coincide with periods of heightened volatility and market stress, according to analysts.
On-chain data from CryptoQuant’s head of research, Julio Moreno, shows weakening demand conditions. The 30-day spread of combined Bitcoin spot and futures demand is now negative, down by 232,000 BTC in the last month.
Bitcoin is currently trading at $63,888 with a 24-hour decline of 4.75% and a market capitalization of $1.28 trillion. The asset’s market dominance stands at 57.86%, indicating continued volatility amidst a prevailing risk-off sentiment.
