Since recording a peak near $126,000 in early October,
$BTC Bitcoin has entered a clear downward trajectory. This week it touched $60,000 before rebounding toward $67,000. We are talking about a decline exceeding 50% from peak to trough a range that aligns with the practical definition of a bear market in highly volatile assets.
More important than the magnitude of the drop is its context: nearly all of 2025’s gains have been erased, with price returning close to 2024 levels. This suggests a broad repricing rather than a temporary technical correction.
Key observation: the synchronization with software equities
The decline since October has coincided notably with a sharp selloff in software stocks, while tangible assets such as gold, silver, and industrial metals have shown resilience or upward momentum. This pattern points to a shift in the market regime from favoring high growth, liquidity sensitive assets to favoring assets associated with hedging narratives, inflation risk, or supply scarcity.
In recent years, markets were pricing in “digitalization” as the dominant macro theme: software, intellectual property, artificial intelligence, and cloud services. Now we see a visible reweighting toward the physical economy, supply chains, and commodities reflected in widening performance dispersion across asset classes.
Analytical conclusion:
$BTC Bitcoin behaves more like a growth/liquidity asset than a hedge/digital gold
The evidence increasingly suggests that Bitcoin is trading more like a proxy for technology/software equities than as an independent hedge asset. This appears in three dimensions:
High sensitivity to liquidity conditions:
When financial conditions tighten or yields on safe assets rise, high-risk assets come under pressure and Bitcoin is frequently part of that basket.
Rising correlation with tech narratives:
When confidence weakens in the AI story or in elevated valuation multiples within software, risk aversion tends to spill over into digital assets.
Sentiment-driven pricing dynamics:
Flows, leverage, positioning, and debt-financed exposure often influence price faster than any short-term measurable fundamental variable.
By contrast, hardware equities have shown relative resilience so far. However, that resilience is not guaranteed. If pressure broadens to the rest of the technology complex, the selloff could widen though such a scenario would require confirmation from data rather than assumption.
Media signals: a sentiment indicator, not a valuation framework
When major media institutions begin publishing repeated “obituaries” for
$BTC Bitcoin, this often reflects a peak in negative sentiment. Historically, waves of intense coverage sometimes coincide with turning points, as media narratives tend to intensify after price movements have already occurred.
That said, such signals should be treated strictly as sentiment indicators, not as valuation arguments.
#btc #bitcoin #TrendingTopic