Bitcoin has fallen significantly behind U.S. equities, marking its weakest relative performance against the Nasdaq-100 since 2019 as investors continue to favor technology stocks and artificial intelligence-related companies over digital assets.
The cryptocurrency is down about 35% from the point where its relative strength versus the Nasdaq-100 peaked nearly a year ago, while the technology-heavy index has gained roughly the same amount during that period. The resulting gap of about 70 percentage points is the widest in favor of stocks since March 2019, according to CNBC.
The divergence has emerged during a period when Wall Street's attention has increasingly centered on artificial intelligence investments, even as geopolitical tensions and higher global borrowing costs have weighed on risk assets. U.S. stocks continued to find support from AI-related spending and earnings growth despite concerns surrounding the Middle East conflict and rising oil prices, according to Reuters.
Escalating regional tensions, including recent Israeli military operations in Lebanon and broader concerns involving Iran, have added to market uncertainty while pushing energy prices higher. The news agency reported that investors have also been assessing the impact of higher Treasury yields and the possibility of additional Federal Reserve tightening.
Options market activity suggests sentiment toward crypto has weakened. According to the report, put options outpaced calls Tuesday in major crypto-linked equities including the iShares Bitcoin Trust (IBIT) and Michael Saylor's Strategy. Data from ThinkOrSwim cited by the network showed nearly 100,000 puts were likely purchased on Strategy compared with fewer than 37,000 calls. The most actively traded contract was reportedly the June 18 $100 put option, reflecting expectations of further downside in the stock.
Bearish positioning was also evident in Coinbase options trading. More than twice as many call options were sold as purchased during Tuesday's session, signaling reduced investor appetite for bullish crypto bets.
The latest figures follow Strategy's disclosure that it sold bitcoin for the first time in nearly four years. The company sold 32 bitcoins between May 26 and May 31 for approximately $2.5 million, according to an SEC filing cited by Investopedia. The proceeds were used to fund preferred-stock dividend obligations. While the sale represented only a tiny fraction of Strategy's holdings, which still exceed 840,000 bitcoins, the move attracted attention because Executive Chairman Michael Saylor had long been associated with a "never sell" approach to bitcoin ownership.
Market reaction was swift. Strategy shares declined after the announcement, while bitcoin extended its losses. MarketWatch reported that the cryptocurrency fell roughly 2% following news of the transaction, with investors focusing on the symbolic significance of the sale despite its limited size.
Beyond company-specific developments, bitcoin has faced persistent outflows from investment products. Axios reported that U.S.-listed spot bitcoin exchange-traded funds experienced approximately $2.8 billion in outflows during a nine-session stretch through late May, the longest withdrawal streak since the products were launched. The trend has coincided with a broader cooling in investor demand for cryptocurrency exposure.
