Bitcoin bleeding $2.8B while stocks party at all-time highs — short the divergence
Bitcoin has fallen to its lowest level since April, with investors pulling a record $2.8 billion out of Bitcoin ETFs over nine straight days. This is happening while regular stocks are hitting all-time highs — a very unusual split.
Idea
Normally Bitcoin and the stock market move roughly together — when stocks go up, crypto does too. Right now the S&P 500 is at record highs while Bitcoin has quietly slid to April lows. That's a red flag. The record $2.8 billion in ETF withdrawals over nine straight days tells us big money is heading for the exits. A massive $9 billion in Bitcoin options are expiring with bearish positioning dominant. The failed attempt to break above $83,000 was supposed to be Bitcoin's comeback moment — instead it reversed hard, which often signals more selling ahead. Coinbase stock could also face pressure as crypto trading volumes and sentiment decline.