Glassnode, the leading platform for cryptocurrency market analysis on-chain, stated that as consumer confidence in the US remains low, investors are rotating into stocks, and Bitcoin is not sufficiently benefiting from this capital rotation and, consequently, cannot rise.
According to Glassnode data, consumer confidence in the US has fallen to a record low, while stock markets continue to reach new highs, pushing Bitcoin to the sidelines.
In its recent report, Glassnode argues that weak consumer sentiment is pushing money into stocks, particularly those related to artificial intelligence, while Bitcoin is being notably overlooked at this stage.
Weak consumer confidence is accelerating capital flow from cash assets into stocks, AI-related assets, and commodities as investors seek higher returns by investing in riskier assets.
Bitcoin Will Remain Outside This Rotation!
The most important point noted by Glassnode is that Bitcoin is not sufficiently benefiting from this capital movement.
According to Glassnode, Bitcoin is trading at roughly half the level of its peak recorded in October 2025 and has lagged behind the stock market throughout the summer.
In the analytical firm's view, this is particularly noteworthy because one of the investment theories for Bitcoin is that it benefits from investors turning to scarce assets during periods of declining confidence in traditional assets.
However, in the current situation, capital is following assets that are showing growth, not Bitcoin. For now, Glassnode assesses the current situation as "money follows assets that are already moving."
What Critical Levels Exist for Bitcoin?
Glassnode interprets the current situation as a period where capital inflows into US stocks, and especially into AI companies, have outpaced inflows into Bitcoin, noting that Bitcoin is stuck between the average of its on-chain realized cost basis of approximately $63,000 and the average cost level for short-term investors at $68,700.
In the analytical company's opinion, a return to the $68,700 level with high trading volume and ETF inflows could be an important sign of recovery for the Bitcoin market. Conversely, losing the June low of $58,500 could increase the risk of BTC testing even lower levels.
According to Glassnode's latest assessment, while there are some signs that Bitcoin sellers are getting tired, there is not yet enough evidence to suggest a significant return of new buyers to the market.
*This is not investment advice.
end-content
