Bitcoin dropped 9.5% over the past week while the S&P 500 kept printing new record highs - a sharp break from the usual pattern of crypto and stocks moving together.
Bitcoin clawed back 0.7% on Wednesday to trade near $67,000, but the bounce doesn't change much.
The coin is back in the same range it traded from February through April, after failing to break above $81,000 last month.
U.S. stocks keep setting new highs while crypto sells off, and the split is starting to worry some investors.
The two have historically moved together, which is why the break feels so unusual.
Money is rotating elsewhere, with U.S. Bitcoin ETFs seeing heavy outflows as investors move into AI-themed stocks instead.
The same trade is showing up inside crypto - AI tokens like NEAR, RENDER and FET all rose around 9% Wednesday while Bitcoin barely moved.
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The derivatives market is flashing red, with roughly $1.7 billion in leveraged crypto bets wiped out in the past 24 hours - double the day before.
Most were long positions - bets that prices will rise - that got caught when Bitcoin briefly slid to $65,500.
Open interest in Bitcoin futures - the total value of outstanding bets in the futures market - sits at a record above 800,000 BTC, up three days running even as the price falls.
That's unusual on the way down, and usually means new short bets - wagers that prices will fall - are piling in rather than longs adding to losing positions.
Options traders are paying up for downside protection too.
Over on Kalshi, the prediction market now sees a 66% chance Bitcoin drops below $55,000 before year-end - and a coin-flip chance it falls under $50,000.
Not everything in crypto is bleeding:
The risk is the moves are getting sharp - Humanity Protocol rallied 200% over the past week, then dropped a quarter of its value in 24 hours as traders cashed out.
The appetite for risk is there, just not in Bitcoin right now.
The $60,000 line is the one to watch - a drop under it would likely set off another round of forced selling and pull the price toward $54,000, the same floor that held in 2021 and again in 2024.
Fear gauges are climbing too, with Bitcoin and Ether's 30-day implied volatility measures posting their biggest single-day jumps since the February 5 crash.
If those gauges keep climbing, the source warns more market pain could follow.
Bitcoin is stuck in a range while stocks keep climbing.
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