Bitcoin's recent performance has diverged sharply from traditional equities, raising concerns about its role as a risk-on asset. According to on-chain analytics firm Glassnode, the cryptocurrency dropped 20% over the past 90 days, while the S&P 500 gained 5%. This stark contrast highlights an "equity-led tape" where stocks continue to attract capital at Bitcoin's expense. The last seven days show the same pattern, with Bitcoin failing to match index strength, Glassnode noted in a post on August 11.
The underperformance extends far beyond the short term. Year-to-date, Bitcoin is down 35% and altcoins have slumped 57%, making crypto the weakest major asset class of 2026. In comparison, gold surged 60%, copper 66%, silver 107%, the Nasdaq 38%, and the Russell 2000 31%. Until Bitcoin reclaims strength against these indices, markets will remain dominated by equities, Glassnode emphasized.
There was a brief reprieve in July, when Bitcoin and Ethereum gained 9% and 20% respectively while the Nasdaq fell nearly 7% amid a sell-off in AI and semiconductor stocks. The decoupling sent Bitcoin's 30-day correlation with the Nasdaq tumbling to 0.43, down from 0.89 in May. BlackRock's head of digital assets, Robert Mitchnick, called this decoupling "healthy" for investors seeking diversification, describing July as a turning point. He also highlighted improving sentiment and renewed inflows into spot Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust (IBIT) alone attracted $693 million out of $853.5 million in total ETF inflows during the week ending August 7, its best week since mid-April. IBIT held $48.51 billion in net assets as of that date.
Traders now watch whether Bitcoin can break resistance around $65,000, a move that could restore confidence and shift leadership away from equities. The current dynamic underscores a market in transition, with Bitcoin’s next directional move likely to set the tone for the broader crypto space.
