Bitcoin (BTC USD) lags S&P 500 for first time since 2014 as AI stocks lead 2025 rally – gold and silver also gain
Bitcoin (BTC USD vs S&P 500: Bitcoin, long known for leading risk-on rallies, is suddenly lagging behind as other assets seize the market’s attention. While the S&P 500 has climbed more than 16% in 2025, Bitcoin has slipped 3%, the first time since 2014 that stocks have surged while the token has fallen, according to Bloomberg data.
Crypto Expectations Fade: Bitcoin (BTC) Falls Behind as the S&P 500 Delivers Strong 2025 Rally
The drop comes at a time when expectations had been high. Many in the industry believed cryptocurrencies would benefit from US president Donald Trump’s return to the White House, anticipating friendlier regulation and increased institutional involvement. Instead, Bitcoin is facing one of its sharpest pullbacks in years.
After setting a record above $125,000 earlier this year, Bitcoin unraveled in a two-month slide driven by billions in forced liquidations and fading retail enthusiasm. The token briefly fell to around $85,000, nearly 30% below its peak, before clawing back above $90,000 on Tuesday and has again dropped to $89,000 on Friday.
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AI Stocks, Gold and Silver Attract Traders
The shift is particularly striking given what’s happening elsewhere in the market. Artificial-intelligence stocks are soaring, capital spending is rising, and equities are attracting strong inflows. Meanwhile, gold and silver are approaching record highs, a sign that traders are finding opportunities outside the crypto space, as per the Bloomberg report.
Precious Metals Are Pulling Momentum From Bitcoin (BTC USD)
Matt Maley, chief market strategist at Miller Tabak + Co told Bloomberg, “Bitcoin is a momentum-based asset. In most of the past ten years, when momentum has been strongly bullish, Bitcoin has been leading the way. The precious metals have stolen a lot of the usual momentum money inflows from Bitcoin this year.”
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ETF Inflows Slow as Bitcoin’s Momentum Weakens
The mood across the crypto industry reflects that shift. ETF inflows have slowed, once-loud endorsements have quieted, and indicators such as the token’s streak of daily highs point to weakening conviction. This year’s run lasted only three sessions, the shortest for any year in which Bitcoin has set new highs.
Analyst Says Bitcoin’s Pullback May Be a Normal Bull-Market Pause
Still, not everyone sees the slowdown as a sign of deeper trouble. Stephane Ouellette, CEO and co-founder of FRNT Financial Inc in Toronto, said that, “The timing of the calendar year also potentially warps this metric. As of early October, Bitcoin had drastically outperformed the S&P 500 on a trailing 12-month basis,” adding, “We could conceivably be in a relatively normal course pullback for the bull-market which happens to warp the narrative on relative performance,” as quoted by Bloomberg.
FAQs
Has Bitcoin recovered from the recent crash?
It rebounded above $90,000 earlier in the week but slipped again to $89,000 on Friday.
What caused Bitcoin’s sharp downturn?
Billions in forced liquidations and weakening retail enthusiasm triggered the two-month slide.