Bitcoin is significantly underperforming equities, and until it begins to regain strength, the current market environment will remain dominated by stocks, according to blockchain analytics firm Glassnode.

Over the past 90 days, Bitcoin has declined 20%, a stark contrast to the S&P 500, which gained 5% over the same period. The divergence means that investors positioning across both asset classes have seen substantially different outcomes depending on their allocation, with equity holders capturing gains while Bitcoin holders absorbed losses.

Looking at year-to-date performance, the broader cryptocurrency market has been the weakest among major asset classes. Bitcoin is down 35% since January, while altcoins have fallen 57%. By comparison, gold has risen 60%, copper 66%, and silver 107%. The Nasdaq and Russell 2000 have gained 38% and 31%, respectively, leaving crypto at the bottom of the rankings across that timeframe.

In a post on Tuesday, Glassnode stated that the market will remain equity-led until this performance gap narrows.

Markets remain an "equity-led tape" until Bitcoin recovers, says Glassnode

Glassnode noted that the pattern persisted over the most recent week.

"The last 7 days show the same pattern," Glassnode wrote. "Until Bitcoin reclaims strength against the indices, this remains an equity-led tape."

Over the last 90 days the S&P 500 rose 5% while Bitcoin fell 20%. The last 7 days show the same pattern. Until Bitcoin reclaims strength against the indices, this remains an equity-led tape. Notably, the NASDAQ is lagging behind other major indices indicating an unfavorable… pic.twitter.com/TpfDwoYB9y — glassnode (@glassnode) August 11, 2026

Glassnode's observation aligns with Bitcoin's market performance in July. Artificial intelligence and semiconductor stocks experienced a sharp correction that month, with chip ETFs plunging over 20% and the Nasdaq-100 falling nearly 7%. However, Bitcoin and Ethereum moved in the opposite direction, gaining 9% and 20%, respectively, diverging from the broader stock market.

This marks a significant shift from their previously tight correlation. In May, Bitcoin's 90-day correlation with the Nasdaq stood at 0.89, according to TradingView data. By July 28, K33 Research reported that the 30-day correlation had dropped to 0.43. A reading near 0.90 indicates that Bitcoin was moving almost in lockstep with the tech-heavy index, while a drop to 0.43 signals a meaningfully weaker relationship, suggesting that Bitcoin's price swings are increasingly being driven by factors independent of broader equity market trends.

BlackRock calls the decoupling "healthy"

Robert Mitchnick, who leads digital assets at BlackRock, said Monday that Bitcoin's decoupling from equities is "healthy" for investors seeking diversification, describing July's results as a turning point for the crypto market.

Mitchnick also noted that crypto sentiment has begun improving over the past month, with inflows returning to exchange-traded funds. Spot Bitcoin ETFs, which received SEC approval in January 2024, have become a primary conduit for institutional exposure to Bitcoin, making their flow data a closely watched barometer of broader market conviction.

As of August 7, BlackRock's iShares Bitcoin Trust (IBIT) held $48.51 billion in net assets, according to SoSoValue, and attracted $693.64 million in inflows during August.

"We have seen sentiment turn in a noticeable but subtle way the last month or so," Mitchnick said.

US spot Bitcoin ETFs brought in $853.5 million during the week ending August 7, their strongest weekly inflow since mid-April. IBIT accounted for approximately $693 million of that total.