Bitcoin price drops 16% while S&P 500 rises 5%

The Bitcoin price is under significant pressure. Over the past month, Bitcoin has fallen by more than 16%, while the S&P 500 has gained around 5%. According to Jim Ferraioli of Charles Schwab, this has little to do with the small Bitcoin sale by Strategy, but rather something more fundamental: Bitcoin is losing its status as an attractive momentum trade.

Bitcoin is available at OKX and Bybit.

Capital flows away to other sectors

Ferraioli explains that investors currently prefer to put their money elsewhere. Sectors such as AI, gold, commodities and promising IPOs are now attracting capital that previously went towards Bitcoin. This shift is causing Bitcoin’s price to lose ground relative to other asset classes that are showing more momentum at the moment.

At the time of writing, Bitcoin is trading around $63.371. a decline of 5.3% in the past 24 hours. The recent downturn is part of a broader trend in which Bitcoin ETF flows are showing the longest outflow period on record, indicating that institutional investors are also becoming more cautious.

Not the sale by Strategy, but a loss of momentum

There has been a lot of attention recently on the dispute on Polymarket regarding the Bitcoin sale by Strategy, but Ferraioli states that this is merely a side issue. The real cause of the underperformance, in his view, lies in the fact that Bitcoin is simply no longer the most attractive place for investors looking for quick profits.

It is notable that Charles Schwab is simultaneously working on further expansion into the crypto market. The company is planning crypto spot trading for advisors in 2027. Despite the current price decline, the interest of large financial institutions in Bitcoin thus remains. Analysts who look at reserve risk see accumulation opportunities for Bitcoin at current levels, suggesting that long-term investors may view the dip as an entry point.