Bitcoin Misses Risk Rally as Global Markets Surge
Bitcoin has failed to participate in recent stock market rallies, even as traditional assets have seen significant gains. According to Glassnode data from August 7, global risk assets such as U.S. equity indices and gold have surged while Bitcoin has remained relatively stagnant.
The divergence is noteworthy because Bitcoin has historically been considered a high-risk asset that tends to move in tandem with other risk-sensitive markets. However, this time around, improving market sentiment has not translated into a corresponding rally for crypto.
One factor contributing to the lack of volatility in Bitcoin prices is the recent self-custody security incident involving Coldcard hardware wallets. In July 31, an attacker exploited a five-year-old flaw and drained approximately $38 million worth of Bitcoin from roughly 500 wallets. Despite this significant on-chain activity, spot prices showed little reaction.
Another contributing factor is the weakening institutional demand for Bitcoin. Spot exchange-traded funds have seen record outflows in June, and corporate buying has failed to offset the selling pressure. A potential catalyst for a rebound could be an increase in institutional flows.