Bitcoin Momentum Collapses

According to a chart shared by Jurrien Timmer of Fidelity, Bitcoin's momentum has collapsed because it is behaving like a high beta "risk-on" asset that is suffering disproportionately during a broader market correction.

Gold (the yellow line) is acting as a "shield" (safe haven), while Bitcoin is acting like a "lever" (risk amplifier).

Below, I show the same asset classes, but now as price momentum, which I use to identify momentum outliers. Again, gold has shown excellent momentum despite being in a significant correction, while Bitcoin is on the other side. pic.twitter.com/X7WCduApYg

— Jurrien Timmer (@TimmerFidelity) November 20, 2025

By the end of 2025, investors are "de-risking". When fear enters the market, liquidity tends to increase. Investors sell their most speculative and volatile assets first to raise cash. Bitcoin, being the most volatile asset in this chart, takes the heaviest hit, causing its momentum to collapse much faster than the S&P 500.

Bitcoin, which is strongly correlated with liquidity and cheap money, faces difficulties when monetary conditions tighten.

Earlier today, the leading cryptocurrency collapsed to the level of $86,000, with altcoins suffering an even greater blow. The cryptocurrency is now experiencing an impressive decline of 31% from its all-time high reached on October 6.

Complete failure of the "digital gold" narrative

The chart shows a critical failure of Bitcoin to act as "digital gold" during this specific period.

After experiencing a slight correction, gold is currently fulfilling its role as a store of value during market stress.

Bitcoin, on the other hand, is in a downward trend, failing to act as a hedge. The cryptocurrency is essentially seen as a proxy for technology/growth,

As reported by U.Today, Timmer previously predicted that gold could potentially pass the baton to Bitcoin in the second half of the year, but BTC ended up collapsing sharply.