Charles Schwab analyst attributes Bitcoin’s decline to capital rotating into AI stocks, IPOs, and gold rather than institutional demand concerns.
Bitcoin’s recent underperformance stems from a shift in investor momentum toward artificial intelligence stocks, IPOs, and gold, according to Charles Schwab analysis. The cryptocurrency, once a dominant speculative trade, has lost its appeal as capital flows into alternative high-growth narratives via platforms previously focused on crypto assets.
Despite regulatory progress and the launch of spot Bitcoin ETFs, the asset remains largely driven by retail and momentum trading. Seasonal weakness and investors’ reluctance to buy below breakeven levels have further dampened demand, overshadowing institutional adoption gains.
Analyst Jim Ferraioli noted Bitcoin has been in a bear market since October, contrasting with broader market optimism around ETF approvals and institutional inflows. The rotation highlights crypto’s vulnerability to broader market sentiment shifts.