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Why Bitcoin Is Sliding Despite Stock Market Gains

Photo by Thought Catalog / Unsplash

Bitcoin is facing renewed pressure as investors pull back from risk assets, pushing the cryptocurrency to its lowest levels since President Donald Trump won the 2024 election.

The latest sell-off followed the nomination of Kevin Warsh as Federal Reserve chair. Warsh is viewed as a monetary hawk, a stance that has weighed on speculative assets such as crypto.

That move compounded a broader decline that began late last year, when investors rotated out of technology stocks and digital assets amid uncertainty over interest rate cuts.

Unlike equities, which have since rebounded, bitcoin has struggled due to crypto-specific headwinds. These include stalled regulation and concerns about large holders such as Strategy, which could be forced to sell if prices fall further.

Some analysts warn losses could deepen. Investor Michael Burry has also cautioned about instability if the downturn continues. For now, sentiment remains cautious.

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