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

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

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

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

, 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. 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,

Corp (ABTC), a company associated with Trump, 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. , while CEO Asher Genoot pointed to the company’s combined approach of mining and treasury management.

Interest from institutions in crypto remains inconsistent.

that give retail and retirement investors access to Bitcoin, , and . 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, , reflecting a broader trend of institutional adoption.

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

, while Ethereum and 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.

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. 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.

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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.

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