Bitcoin Now Tracks Tech Stocks, Not Gold, Says Grayscale

According to analysis from Grayscale, Bitcoin’s recent trading patterns show it tracking closely with shares of software companies rather than with traditional safe havens like gold or silver. This notable change in behavior has been apparent since early 2024, a period marked by significant institutional flows and the launch of spot Bitcoin exchange-traded products (ETFs) in the United States. These developments have pushed cryptocurrency into more mainstream investment hands, fundamentally altering its market dynamics.

The report indicates that investors chasing growth narratives—many of whom have been drawn by the artificial intelligence (AI) story—have been selling software stocks aggressively. Bitcoin has followed some of that same selling pressure, demonstrating a correlation that undermines its historical narrative as a ‘digital gold’ or a hedge against market uncertainty. Instead, its price action now resembles that of a high-upside, high-risk growth bet, moving on hope and retreating when fear returns to the markets.

Deeper ties to traditional markets explain a significant part of this behavioral shift. The growing presence of large firms, the mechanics of ETFs, and increasing institutional holdings mean that movements in equity markets can now spill directly into the crypto space. This integration has made Bitcoin more susceptible to the same forces that drive tech stock volatility.

This connection has been starkly illustrated by recent market activity. Reports note active selling from US-based accounts that left Bitcoin trading at a discount on some platforms. This selling occurred after a string of large liquidations late in the year and again in recent weeks, which amplified losses for traders using leverage. The result is a market characterized by sharp swings and wide intraday moves, reflecting a cautious and reactive trading mood. From its peak above $126,000 in October, the market has pulled back by roughly 50% in several waves, showcasing how quickly sentiment can turn.

The divergence between Bitcoin and traditional safe havens has become particularly pronounced. While bullion has climbed to fresh highs amid rising geopolitical friction, Bitcoin has failed to mirror those safe-haven flows. This dynamic has driven some capital into metals and away from riskier bets, including technology shares and cryptocurrencies.

Traders who expected Bitcoin to act as a fortress against turmoil have found that, for now, it behaves more like a speculative growth asset. A return of fresh capital would likely be needed to steady prices. Potential catalysts include renewed ETF inflows or a wave of retail buyers. However, research suggests retail interest is currently concentrated on AI and other growth narratives, leaving crypto out of favor for many individual investors. This concentration of attention is critical, as capital flows are the primary force that lifts or sinks these markets.

Despite the short-term correlation with tech stocks, Grayscale’s analysis suggests Bitcoin’s long-term potential as a store of value remains intact. The firm argues that the recent price action reflects the cryptocurrency’s ongoing market integration and current investor activity rather than a fundamental change in its core proposition.

Where price stands now illustrates this tension. Bitcoin is changing hands around $66,900, with clear technical resistance near $69,900 and support levels slipping under $66,600. Future performance, analysts note, will depend heavily on the direction of capital flows and broader economic trends. The path forward hinges on whether Bitcoin can attract sustained investment independent of tech sector sentiment or if its fate remains tied to the volatile rhythms of growth equities.