This year, though the crypto market looked eventful, but it really wasn’t all that. While stocks and metals pushed higher, digital assets struggled to keep pace with their gains.
The underperformance doesn’t necessarily mean the market is broken. However, the next year may bring rotation after all this wait.
A gap that refuses to close
Since November, gold climbed about 9% and the S&P 500 also saw some gains. However, Bitcoin [BTC] moved in the opposite direction, down roughly 20%!
The contrast is huge, considering crypto lagged behind at a time when risk assets elsewhere held up.
Source: Santiment
But this isn’t about a sudden loss of belief in Bitcoin. The capital simply went someplace else.
The demand for safety helped metals benefit. Equities also saw gains from selective optimism, while crypto remained stuck in a holding pattern.
The crypto market has been ignored despite all its activity, but it could be a good starting point for 2026.
The big players aren’t shaken
While STHs oscillated, LTHs have stayed put since July. There’s been little distribution from this group, even as prices slid. They’re still very confident.
Source: X
One possible reason is rotation. Garrett Jin, former CEO of BitForex, says that capital may already be coming back to crypto as metals slow down.
“Capital is beginning to flow into crypto,” he noted in an X post. Traders tend to sell strength and re-enter weakness. If that’s the case, Bitcoin’s calm is definitely a front for positioning.
Perhaps, LTHs are waiting for the cycle to turn rather than rushing for the exit.
The calendar matters more
The picture’s not all bright, though. Bitcoin’s worst years (2014, 2018, and 2022) were all midterm years, with huge drops and longer weaknesses. On that basis alone, 2026 may very well be another potential stress test.
Source: X
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