Bitcoin’s status as “digital gold” is being questioned as its recent price action resembles high-risk growth assets more than a safe haven, according to Grayscale. Bitcoin’s correlation with software stocks has increased, reflecting deeper integration into traditional markets due to institutional participation and shifting macroeconomic sentiment.

The recent plunge in Bitcoin mirrors software stock collapses since early 2026. Grayscale’s report highlights the cryptocurrency’s growing sensitivity to equities and growth assets, driven by institutional involvement and ETF activity. Bitcoin’s recent 50% decline from its October peak has unfolded in waves, with US sellers contributing to persistent price discounts on Coinbase.

Grayscale views Bitcoin’s evolving narrative positively, suggesting it’s part of the asset’s ongoing evolution rather than a setback. While Bitcoin has not displaced gold as a monetary asset in a short period, its failure to do so is central to the investment thesis. Bitcoin’s annualized returns have significantly outpaced gold over the past decade despite recent underperformance.

Bitcoin’s recovery may hinge on fresh capital inflows through ETFs or retail investors. Market maker Wintermute notes that retail participation has focused on AI-related stocks, limiting demand for crypto assets. Wall Street banks have increasingly embraced Bitcoin, stablecoins, and tokenized cash, signaling a shift towards mainstream adoption of digital assets.

Read more at Coin Telegraph: Bitcoin Trades Like Growth Stock, Not Gold: Grayscale