Bitcoin trails stocks by most since 2019 as traders get their kicks elsewhere

• Bitcoin is down 35% versus the Nasdaq-100 since peaking a year ago, while the tech index has rallied an equal amount, creating the widest gap favoring stocks since March 2019
• Put options on crypto equities are now outpacing calls, with nearly 100,000 puts bought versus under 37,000 calls in MicroStrategy, signaling a bearish shift in sentiment
• Rising interest rates across global bond markets may be the primary catalyst for crypto weakness, as bitcoin's previous 'winters' in 2018 and 2022 coincided with Fed rate hikes

Bitcoin Trails Stocks by Widest Margin Since 2019

Key Performance Metrics:

Bitcoin has underperformed the Nasdaq-100 by a 70-percentage-point gap—the widest divergence favoring stocks since March 2019. The cryptocurrency, trading at a $1.3 trillion market cap, is down 35% relative to the tech-heavy index over the past year, while the Nasdaq-100 has rallied approximately 35% during the same period.

Options Market Signals Bearish Shift:

For the first time in weeks, options activity in key crypto-related equities has turned bearish. MicroStrategy (MSTR) saw nearly 100,000 puts purchased versus under 37,000 calls on Tuesday, with more calls being sold than bought. The most popular contract was the June 18 100-strike put, betting on new year-to-date lows. Similar bearish sentiment emerged in BlackRock's Bitcoin ETF (IBIT) and Coinbase, where twice as many calls were sold as bought.

Market Catalysts:

Analysts cite multiple factors for crypto weakness:

• MicroStrategy's first bitcoin sale in four years (announced Monday)
• Investor capital rotation toward upcoming IPOs
• Growing popularity of 0-day options drawing traders away from crypto
• Rising interest rates across global markets (U.S. Treasuries, Japanese bonds)

Expert Analysis:

Charlie Moon of Prosper Trading Academy notes that day-traders previously focused on bitcoin are now satisfying their risk appetite elsewhere. David Dziekanski of Quantify Funds emphasizes that the current equity rally is driven by innovation and productivity, leaving scarcity assets like bitcoin behind as financing costs rise—echoing bitcoin's harsh "winters" during Fed rate-hiking cycles in 2018 and 2022.