Stocks, Gold, and AI Rally — Why Is Bitcoin (BTC) Bleeding?
By Lockridge Okoth | Edited by Zummia Fakhriani
December 3, 2025, 09:30 WIB
As global markets witness soaring rallies in stocks, gold, silver, and AI technology shares, Bitcoin (BTC), the flagship cryptocurrency, is experiencing a notable decline, leaving investors and analysts puzzled over the contrasting trends. This divergence has sparked discussions about underlying structural forces and the future direction of capital flows in the financial ecosystem.
Bitcoin Falls Amidst Soaring Traditional Assets
While equities, precious metals, and AI-driven tech stocks have been hitting record highs, Bitcoin has slipped sharply. Mike McGlone, Senior Commodity Strategist at Bloomberg, highlights the declining Bitcoin-to-gold ratio as a key metric signaling increased volatility and relative weakness for Bitcoin.
As of December 1, the ratio hovers around 20x — roughly half the peak of 40x seen after Donald Trump’s re-election. Historically, this ratio serves as an indicator of Bitcoin’s relative strength compared to gold, a traditional safe-haven asset. The sharp drop suggests Bitcoin is lagging behind other risk-assets amid potential market volatility ahead.
McGlone warns that if this trend persists, Bitcoin may test even lower relative levels, which could impact portfolios heavily invested in crypto.
An Unusual Cryptocurrency Sell-off Despite Bullish Macroeconomics
Jeff Dorman, Chief Investment Officer at Arca, describes the current crypto sell-off as “one of the strangest” despite generally bullish macroeconomic conditions. Markets overall are thriving, fueled by Federal Reserve interest rate cuts, strong consumer spending, record corporate earnings, and robust demand for AI technologies.
Dorman points out that common narratives used to explain the sell-off—such as insolvency fears or bearish shifts by companies like MicroStrategy (MSTR), Tether, or Nvidia—lack factual basis. Instead, he attributes the crypto market’s weakness to structural issues: fatigue among crypto-native investors and an absence of meaningful institutional liquidity from major players including Vanguard, State Street, JPMorgan, and Goldman Sachs.
Until institutional investors can smoothly access crypto markets, liquidity constraints are likely to persist.
Implications for Investors: Risk and Opportunity
The widening gap between cryptocurrency markets and traditional assets introduces both risk and opportunity. The declining Bitcoin-to-gold ratio combined with a slow pace of institutional inflows signals potential short-term volatility in crypto markets.
However, experts believe that once institutional adoption barriers ease, large-scale capital inflows could fuel significant growth. A continued drop in the Bitcoin-to-gold ratio may also reflect a growing risk-off sentiment, potentially delaying broader crypto market recovery.
Other Noteworthy Crypto Market Updates
- Europe strives to catch up with the U.S. in the stablecoin race, with Bitget’s CEO weighing in on implications.
- Tokenized silver assets gain attention amid rising precious metals prices.
- The anticipated debut of a Chainlink (LINK) ETF sparks hopes for a resurgence in the altcoin’s value.
- A 90% decline in inflows into tokenized assets (DAT) raises concerns about a hidden liquidity crisis in enterprise crypto.
- Veteran Bitcoin miners with dormant wallets resurface amid recent turbulent market conditions.
- XRP edges close to a correction territory, but on-chain data offers rare optimism.
Snapshot of Crypto-Related Stock Performance (December 1 Closing):
| Stock | Closing Price (USD) | Pre-Market Price (USD) | Change (%) |
|---|---|---|---|
| MicroStrategy (MSTR) | 171.42 | 175.33 | +2.28 |
| Coinbase (COIN) | 259.84 | 264.62 | +1.84 |
| Galaxy Digital Holdings (GLXY) | 24.80 | 25.28 | +1.98 |
| MARA Holdings (MARA) | 11.52 | 11.75 | +2.00 |
| Riot Platforms (RIOT) | 15.48 | 15.73 | +1.61 |
| Core Scientific (CORZ) | 16.59 | 16.75 | +0.96 |
Conclusion
Bitcoin’s recent underperformance amidst soaring stocks, precious metals, and AI sector gains raises questions about crypto’s immediate outlook. The absence of institutional demand and a falling Bitcoin-to-gold ratio are indicators of growing uncertainty and potential volatility in cryptocurrency markets.
Investors should monitor these structural dynamics carefully, as the eventual arrival of broader institutional participation could serve as a powerful catalyst for Bitcoin and the overall crypto space.
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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers are responsible for their own investment decisions.