Great Bitcoin Crash of 2025 Has It Lagging Bonds, Gold

Core Insights - Bitcoin has fallen nearly 30% from its 2025 peak, underperforming compared to tech stocks and T-bills, and is likely to end the year in the red [1][5] - Gold, long-term bonds, and the Nasdaq have outperformed Bitcoin, which was once considered a digital gold alternative [2] - Bitcoin's performance has lagged behind benchmarks like the MSCI Emerging Markets Index and the US Utilities Index, which have shown significant gains this year [3] Performance Analysis - Bitcoin briefly dipped below $90,000, the average entry price for ETF inflows, indicating that many ETF investors were temporarily underwater [4] - The year was expected to be a breakout for crypto due to a pro-crypto administration and new ETF regulations, but instead, it has mirrored past cycles of euphoria followed by crashes [5][6] - Bitcoin has not effectively offset losses in diversified portfolios or acted independently during market volatility, disappointing professional investors [7] Market Sentiment - The October crash, which wiped out approximately $19 billion in leveraged positions, has left lasting psychological impacts on the market, affecting liquidity and risk appetite [8]