Bitcoin $BTC ( ▼ 0.24% ) has dropped below $85,000 for the first time since November, struggling while gold surges to fresh highs. The move highlights a clear shift toward traditional safe havens as investors grow more cautious about global policy risks and economic instability.
Sentiment and flows are turning
Crypto sentiment has cooled notably, with fear replacing the optimism that fueled earlier gains. Bitcoin ETFs have seen billions in net outflows in recent months, marking their first real stress test and signaling that institutional conviction is being challenged at current price levels.
More holders underwater
With prices down sharply from recent highs, a majority of bitcoin investors are now sitting on losses. Analysts warn that when large portions of the market are underwater, rallies tend to face heavier resistance while dips can trigger more panic selling as traders try to cut risk.
Long-term holders are moving coins
On-chain data shows long-term holders reducing positions at the fastest pace in months. That does not automatically mean the bull cycle is over, but it does suggest a transition phase where ownership may be rotating from early adopters to institutions. The path forward could be choppier, with sharper swings in both directions, as bitcoin $BTC tests where stronger hands are willing to step in.