Bitcoin isn't crashing because of Saylor, it's losing the momentum trade
Key takeaways
- Charles Schwab analyst Jim Ferraioli sees a simpler explanation: Bitcoin is losing the momentum trade.
- "Bitcoin has been in a bear market since October," Ferraioli said in an interview.
- Instead, capital has been flowing elsewhere.
Santiago/Getty Images)What to know: Bitcoin’s recent underperformance is less about fading institutional demand or Michael Saylor’s sales and more about losing its status as the market’s dominant momentum trade, according to Charles Schwab analyst Jim Ferraioli.Capital that once chased speculative gains in crypto is increasingly flowing to other hot narratives such as gold, artificial-intelligence-related stocks and IPOs, often via crypto-native platforms that now enable trading of non-crypto assets.Despite growing institutional adoption, regulatory progress and expanded ETF access, bitcoin remains primarily a retail, momentum-driven asset, and seasonal weakness plus investors’ desire to exit at breakeven have left it struggling to attract fresh buying.Bitcoin's BTC$66,924.57 recent struggles to rise in tandem with U.S. stocks has sparked a wave of explanations, from concerns about Michael Saylor's Strategy (MSTR) selling bitcoin to questions about whether institutional demand is beginning to fade.
Charles Schwab analyst Jim Ferraioli sees a simpler explanation: Bitcoin is losing the momentum trade.
"Bitcoin has been in a bear market since October," Ferraioli said in an interview. "Not to say it's as simple as that, but it's kind of simple as that."