Bitcoin losing momentum trade, not crashing on Saylor sales: analyst

Bitcoin's recent inability to rally alongside U.S. stocks has sparked various explanations, but Charles Schwab analyst Jim Ferraioli offers a simpler view: the cryptocurrency is losing the momentum trade.

Bitcoin has been in a bear market since October, Ferraioli said, contrasting with the broader market narrative focused on positive developments like spot ETF approvals and institutional inflows. While some have pointed to Michael Saylor's Strategy (MSTR) selling bitcoin as a drag, Ferraioli argues the underperformance is more structural. The momentum trade that once propelled Bitcoin higher has faded, leaving it less correlated with risk assets like equities.

For cryptocurrency and digital asset traders, this shift matters because it suggests Bitcoin may no longer serve as a reliable proxy for risk-on sentiment. Traders tracking price action on NowPrice's live crypto dashboard can observe how BTC's correlation with the S&P 500 has weakened. The loss of momentum could also signal a period of consolidation, with Bitcoin trading in a range rather than trending higher. On-chain metrics show exchange reserves declining, but that supply squeeze has not translated into upward price pressure, reinforcing the momentum narrative.

Looking ahead, traders should watch for a catalyst to reignite momentum, such as a Federal Reserve rate cut or a major regulatory shift. Until then, Bitcoin may continue to lag equities, with the next key support level around $60,000. Ferraioli's analysis suggests that without a new driver, the bear market could persist, making it crucial for traders to monitor volume and trend indicators on NowPrice.