According to TechFlow, according to Coinbase's latest weekly report, Bitcoin has underperformed the U.S. stock market and other macro assets recently. Since deleveraging in early August, Bitcoin's performance has lagged behind the stock index.
Coinbase analysts David Duong and David Han noted: “On a risk-adjusted basis, the Bitcoin price is currently 0.50 standard deviations below its three-month average, while the S&P 500 is actually 1.41 standard deviations above its three-month average.”
Analysts believe that Bitcoin's recent price performance has been volatile, trading in a relatively narrow range, which is consistent with concerns about the lack of a new specific narrative to drive the asset's price performance. They said: "Bitcoin prices have struggled to fully recover since early August. The lack of a new narrative, coupled with the fact that September has historically been a difficult period for cryptocurrencies, has kept traders on the sidelines."
The main reasons for this include reduced ETF inflows, Bitcoin’s unique supply glut, and a rebound in the U.S. dollar index that could weigh on cryptocurrency performance.
Analysts also noted that Ethereum continues to underperform Bitcoin, with the ETH/BTC ratio reaching a year-to-date low, which correlates with outflows from spot Ethereum ETFs.
