As digital gold, Bitcoin has not taken off and remains hovering below $88,000, having dropped about 4% in the past week.

Why do funds rush into gold when the world feels uneasy, yet remain cautious about Bitcoin? For a long time, we have been accustomed to viewing Bitcoin as a safe-haven asset. However, recent data shows that cryptocurrencies are struggling to integrate into macro hedge trading. When the dollar weakens and risks increase, stocks and precious metals rise, yet Bitcoin is far below its October highs.

The current question is whether Bitcoin is being treated as digital gold or merely seen as a highly volatile stock sensitive to liquidity. Many analysts believe Bitcoin is currently underperforming compared to metals, with a bearish technical trend.

If Bitcoin is still in a dilemma, Ethereum seems to be undergoing a tear. Data shows that institutional investors withdrew over $630 million from Ethereum last week. But strangely, the spot Ethereum ETF saw an inflow of $110 million on Monday. If institutions are panicking, why do ETF investors view this as a buying opportunity? It’s clear there is a significant divergence in the market: some are actively reducing their holdings, while others are preparing for a rebound. This kind of game often occurs at critical psychological support levels like $3000.

If you only focus on insider news, you can easily misjudge the direction. The current trend depends more on this week’s Federal Reserve interest rate decision and the earnings reports of the "seven giants" of U.S. stocks. This sounds like a stock issue, but in reality, it affects the confidence baseline of global risk assets.

Why do Nvidia and Microsoft often lead to Bitcoin falling when they can’t rise? Over the past one to two years, the core narrative of the global bull market has been singular: AI. If the earnings reports of these giants indicate:

• Huge investment in AI

• But profits fail to meet expectations

Then the market will do one thing—kill valuations, reduce risk, and reclaim liquidity. Consequently, when tech stocks start to be "deflated," why should Bitcoin, categorized as a high-risk asset, remain unscathed?

Therefore, when large funds retreat from tech stocks, they often also reduce exposure to crypto assets. This is not a conspiracy, but a mathematical result of asset allocation.