Bitcoin's Price Action Tied to Equities, Weakness Exposed

Bitcoin's recent price action has been closely tied to the performance of US equities, rather than driving them. The cryptocurrency's failure to hold above $64,000 on a session when equity risk appetite improved has highlighted its weakness in this regard.

The absence of a catalyst for Bitcoin's move was notable, with the cryptocurrency tracking US futures rather than leading them. This correlation is significant, as an asset trading as a high-beta expression of the Nasdaq is not being repriced on its own fundamentals.

IBIT, the largest holder of Bitcoin through a regulated wrapper, holds 734,261 coins at an average cost basis near $83,080. This creates a $17.61 billion unrealized loss, with the fund's cost basis sitting 29.2% above current price.