Bitcoin News Update: Institutions Favor Equities Over Bitcoin, Highlighting the Cryptocurrency's High-Volatility Vulnerability

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Bitget-RWA2025/11/14 23:14

By:Bitget-RWA

- Wintermute analysis reveals Bitcoin's heightened correlation with the NASDAQ-100 during downturns, showing negative skew as institutional funds shift to equities. - Bitcoin's 18% decline vs. NASDAQ's 3.7% gain since Fed rate cuts highlights "high-beta tail" behavior, with ETF outflows and weak derivatives markets exacerbating weakness. - Anchorage Digital partners with BOB to offer $250M in Bitcoin DeFi yields, while RockToken introduces structured crypto investment plans targeting retail and retirement

The relationship between Bitcoin and the NASDAQ-100 index has

grown stronger during periods of market decline

, as revealed in a recent report from crypto trading company Wintermute. Although

Bitcoin

(BTC) and the NASDAQ share a robust 0.8 correlation, the difference in their returns has become mostly negative since the Federal Reserve started lowering interest rates in September. This trend demonstrates Bitcoin's "high-beta tail" pattern, meaning it

tends to follow stock market drops more intensely than it benefits from rallies

Bitcoin News Update: Institutions Favor Equities Over Bitcoin, Highlighting the Cryptocurrency's High-Volatility Vulnerability image 0

According to Wintermute, this pattern has reached its lowest 365-day rolling positive skew since the 2022 bear market, indicating a shift in both institutional and retail focus toward equities.

The company linked this imbalance to a broader movement of US dollar risk preference away from crypto and into stocks in 2025.

Bitcoin’s 18% drop since the Fed began cutting rates

, compared to the NASDAQ-100’s 3.7% increase, highlights this transition. Lower ETF inflows, a plateau in stablecoin issuance, and thinner market liquidity have all contributed to Bitcoin’s underperformance.

Wintermute further pointed out that this negative skew

is usually seen in bearish phases, yet Bitcoin is still trading close to its record highs, suggesting that investors may be fatigued.

At the same time,

American Bitcoin

Corp (ABTC), a company associated with Trump,

saw its stock fall 6.5% in premarket trading

even after doubling its Q3 revenue to $64.2 million. The firm’s gross margin rose to 56%, and its Bitcoin holdings increased to 3,418 BTC since April. Nevertheless, the stock’s volatility and its closeness to a 52-week low have made investors wary.

Eric Trump, a co-founder, stressed Bitcoin’s revolutionary impact

, while CEO Asher Genoot pointed to the company’s combined approach of mining and treasury management.

Interest from institutions in crypto remains inconsistent.

RockToken launched structured investment products

that give retail and retirement investors access to Bitcoin,

Ethereum

, and

USDC

. These offerings, priced from $199 to $149,995, are designed to make crypto investing easier with clear yield structures. Nicholas Aitken, the company’s CEO,

observed increasing interest in crypto as a component of diversified portfolios

, reflecting a broader trend of institutional adoption.

On the other hand, the wider crypto sector continued to experience heavy selling.

Bitcoin hovered around $95,000

, while Ethereum and

XRP

dropped below $3,200 and $2.30, respectively. Outflows from ETFs picked up pace, with $870 million leaving US-listed BTC spot ETFs in just one day. Grayscale’s GBTC led the way with $318 million in withdrawals, and Ethereum ETFs saw $260 million in redemptions. Weakness in derivatives and falling open interest further pointed to softening retail demand.

A fresh institutional gateway appeared

as Anchorage Digital joined forces with BOB (Build on Bitcoin) to offer custody solutions for Bitcoin-based DeFi. Supported by a federally chartered US bank, this partnership aims to unlock $250 million in yield opportunities for institutional clients.

Anchorage’s CEO, Nathan McCauley, emphasized the opportunity

to combine Bitcoin’s security with Ethereum’s DeFi features, paving the way for regulated institutional involvement.

The shifting market landscape—from equity-driven risk appetites to new institutional frameworks—highlights Bitcoin’s changing significance in global investment portfolios. As volatility endures, both investors and companies are adjusting their approaches to better manage risk, returns, and compliance.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

- Bitcoin hit a six-month low at $103,778 amid AI-driven economic fears and geopolitical tensions, driven by leveraged liquidations and risk-off sentiment. - Institutional support for Bitcoin ETFs remains strong, with $130B in assets despite $2.9B in outflows, as BlackRock's IBIT ($80.58B) attracts inflows. - Trump's $2,000 tariff proposal briefly boosted Bitcoin 2% but intensified trade tensions, highlighting crypto's sensitivity to macroeconomic policy shifts. - Technical indicators show sustained bearis

Bitget-RWA•2025/11/14 23:50

Bitcoin Updates: Wall Street Connections Heighten Crypto Risks as Bitcoin Reaches Lowest Point in Six Months

Ethereum Updates Today: Institutions Accumulate While Long-Term Investors Exit, Intensifying the Crisis of Confidence in Crypto

- Institutions like BitMine continue buying Ethereum despite market declines, accumulating 19,500 ETH this month. - Long-term holders sell at breakeven while super-whales add $53.9M ETH, highlighting fragmented market sentiment. - Bitcoin/ETH ETFs see $1.13B outflows as prices fall below $100k and $3,150, with $1.1B in leveraged liquidations. - Market remains bearish with weak retail demand, but large buyers and Ethereum's Fusaka upgrade could drive volatility shifts.

Bitget-RWA•2025/11/14 23:50