Bitcoin’s (BTC) market behavior continues to evolve, with recent trends suggesting it is being treated more as a risk-on asset than a traditional store of value, according to a new report from Bitfinex. 

Bitcoin’s price has remained in a consolidation range between $91,000 and $102,000 for over 75 days, reflecting declining volatility and increased market stability. 

The report highlighted that BTC’s correlation with equities has strengthened. At the same time, its relationship with gold has weakened, suggesting the crypto role as a risk asset instead of a store of value.  

Additionally, Bitfinex noted that Bitcoin remains sensitive to macroeconomic developments and reacts sharply to geopolitical events, including President Donald Trump’s recent imposing of new tariffs on Mexico, Canada, and China.

Risk-on asset

Despite its positioning as “digital gold,” Bitcoin has not mirrored gold’s recent rally. The correlation between Bitcoin and the S&P 500 has strengthened, while its correlation with gold has weakened.

Bitcoin has yet to see the long-term institutional inflows that have driven gold’s price surge. Central banks, sovereign wealth funds, and institutional investors have significantly increased gold holdings amid economic uncertainty, whereas Bitcoin remains primarily driven by speculative demand.  

Although the trading of spot Bitcoin exchange-traded funds (ETFs) has contributed to their broader adoption, these investment instruments remain volatile. 

The report pointed out that Bitcoin ETFs collectively hold over $116 billion in assets under management, equivalent to 6.08% of Bitcoin’s total supply. However, ETF flows have been inconsistent, with significant outflows of $234.4 million and $140.2 million on separate days last week.  

In contrast, gold has benefited from structural buying, as investors seek hedges against inflation, economic instability, and the effects of Federal Reserve interest rate policies.

The Trump administration’s aggressive trade stance and ongoing fiscal exp

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Author: Gino Matos