Bitcoin, Ethereum Perform Terrible Compared To Gold, Silver—And That’s Totally Ok

In the current market environment, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) have notably lagged behind other risk assets like equities and precious metals.

Crypto analyst Garrett Bullish attributes this underperformance to three primary factors:

• The lingering effects of a deleveraging cycle
• Unique market micro-structure issues
• Potential manipulation by speculative entities

Crypto’s “Ghost Town” Effect: Deleveraging and Retail Exhaustion

The crypto market is suffering from a “deleveraging hangover” that began in October, the analyst noted in an article published on X on Thursday.

This flush wiped out a significant portion of speculative capital, particularly hitting retail traders who often use 10-20x leverage.

Retail capital, the lifeblood of crypto markets in Asia and the US, has been absorbed by the FOMO rallies in AI equities and precious metals.

Unlike traditional finance (TradFi) where capital …

Full story available on Benzinga.com