#CelebratingNewYearOnGateSquare 💰 BTC behaves like a tech stock

Bitcoin has moved almost in sync with the stocks of rapidly growing IT companies, according to Grayscale analysts. This has intensified the debate: is it more “digital gold” or a risky growth asset?

💬 Grayscale analysts note that in the short term, Bitcoin behaves like a growth asset. During the sell-off, it moved in tandem with software companies. This suggests that the decline was part of a general investor retreat from risk, rather than solely a crypto-specific problem.

At the same time, the idea of “digital gold” remains intact. BTC has a limited supply and is independent of governments. But unlike gold, which has a millennia-old history, Bitcoin is only 17 years old. It is still establishing its status.

👀 Signs of a local bottom are already present: open interest in derivatives has fallen, and funding rates have turned negative — this is a signal of cooling from overheating, according to Grayscale.