Why Bitcoin Is The Only Major Asset Underperforming Despite Strong Fundamentals

bitcoinistPublished on 2025-12-21Last updated on 2025-12-21

Abstract

Bitcoin is underperforming compared to other major assets like gold and stocks, despite strong fundamentals such as robust network security, dominant long-term holder supply, and unprecedented institutional access. Analysts point to hedging and synthetic leverage as factors driving its price rather than investor conviction. Although the U.S. has a pro-Bitcoin administration, institutional demand is growing, and Michael Saylor’s Strategy has acquired large amounts of BTC, the cryptocurrency remains down 6% year-to-date and 30% below its all-time high. Some experts emphasize that global liquidity trends are key to Bitcoin’s long-term performance. Despite current fear in the market, whales are accumulating BTC, suggesting potential future gains. The advice for investors is to hold and wait.

In the financial landscape, Bitcoin stands out as one of the few major assets that have failed to keep pace with broader market gains. This underperformance comes despite strong underlying fundamentals, where its price is being governed by the mechanics of hedging and synthetic leverage rather than the conviction of its holders. Network security remains strong, long-term holders continue to dominate supply, and institutional access has never been broader.

How This Cycle Looks Different For Bitcoin

There’s no satisfying explanation for one of the strangest market outcomes of the year. An entrepreneur, Bitcoin investor, and founder of Wealth Mastery, Lark Davis, has mentioned on X that Bitcoin is the only asset underperforming, while gold and stocks are printing all-time highs, and 2025 was supposed to be the golden moment for BTC.

Davis highlighted that in 2025, the United States had a pro-BTC administration for the first time in history, and there was demand for the cryptocurrency and peak adoption from institutions and nation-states. Macro conditions turned supportive, and Wall Street has effectively rolled out the red carpet for BTC.

At the same time, Michael Saylor’s Strategy purchased a BTC supply greater than the average daily production of miners. Despite all this bullishness, BTC is still down 6% from its yearly open and still around 30% below its all-time high. Meanwhile, the rest of the crypto looks worse as altcoins have been crushed, with many down 80% to 90% over the last two years.

The 2026 Bitcoin chart will be the most important to watch. A full-time crypto trader and investor, Daan Crypto Trades, highlighted that Global liquidity is the metric to watch for BTC’s long-term performance. It’s not a holy grail that works every single day, but there are shorter-term deviations right now.

Source: Chart from Daan Crypto Trades on X

When overlaying global liquidity growth with long-term price performance, it shows that the peaks and troughs align with remarkable accuracy. Daan believes that this BTC setup is more important than a rate cut, and the overall stock market performance will reveal a good signal.

Whale Accumulation While The Market Hesitates

While fear dominates across the market, a whale has been quietly buying BTC since yesterday. Crypto educator Wilberforce Theophilus revealed that over the past 24 hours, more than 2,509.2 BTC, which is approximately $221 million worth of BTC, has been accumulated.

According to Wilberforce, December 2020 was objectively worse than today, but in January 2021, BTC was $1 and then rallied to $19,000. December 2025 doesn’t stand out as extremely bearish when viewed through a long-term lens. “I have just one piece of advice: HODL and WAIT,” the expert noted.

BTC trading at $88,264 on the 1D chart | Source: BTCUSDT on Tradingview.com

Related Questions

QAccording to the article, why is Bitcoin underperforming despite its strong fundamentals?

AThe article states that Bitcoin's price is being governed by the mechanics of hedging and synthetic leverage rather than the conviction of its holders, despite strong network security, long-term holder dominance, and broad institutional access.

QWhat did Lark Davis mention about Bitcoin's performance compared to other assets?

ALark Davis mentioned on X that Bitcoin is the only major asset underperforming, while gold and stocks are printing all-time highs, and that 2025 was supposed to be the golden moment for BTC.

QWhat key metric did Daan Crypto Trades highlight as crucial for Bitcoin's long-term performance?

ADaan Crypto Trades highlighted that global liquidity is the crucial metric to watch for Bitcoin's long-term performance, noting that its peaks and troughs align with BTC's price performance with remarkable accuracy.

QWhat significant accumulation activity was reported by Wilberforce Theophilus?

AWilberforce Theophilus revealed that over a 24-hour period, a whale accumulated more than 2,509.2 BTC, which is approximately $221 million worth of Bitcoin.

QWhat historical comparison did Wilberforce Theophilus make to the current market situation?

AWilberforce Theophilus compared the current market to December 2020, stating it was objectively worse, but was followed by a rally from $1 to $19,000 in January 2021, advising to 'HODL and WAIT' through the current period.

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