TechFlow news, according to Coinbase's latest weekly report, Bitcoin has recently underperformed compared to the U.S. stock market and other macro assets. Since de-leveraging in early August, Bitcoin has consistently trailed behind stock indices.
Coinbase analysts David Duong and David Han noted: "From a risk-adjusted perspective, Bitcoin is currently 0.50 standard deviations below its three-month average level, while the S&P 500 Index is actually 1.41 standard deviations above its three-month average."
The analysts believe Bitcoin’s recent price movements have been volatile and confined within a relatively narrow range, consistent with concerns over the lack of new specific narratives driving asset performance. They stated, "Bitcoin has struggled to fully recover since early August. The absence of new narratives, combined with September historically being a challenging period for cryptocurrencies, has kept traders on the sidelines."
Key factors contributing to this situation include reduced inflows into ETFs, Bitcoin-specific supply oversupply, and a rebound in the U.S. Dollar Index that may be weighing on cryptocurrency performance.
The analysts also pointed out that Ethereum continues to underperform Bitcoin, with the ETH/BTC ratio reaching a year-to-date low, linked to outflows from spot Ethereum ETFs.
