Glassnode, a leading on-chain analysis platform for the cryptocurrency market, stated that as consumer confidence in the US remains weak, investors are shifting towards equities, and Bitcoin is not benefiting enough from this capital rotation and therefore is unable to rise.
According to Glassnode, consumer confidence in the US has fallen to a record low, while stocks continue to reach new highs, pushing Bitcoin into the background.
At this point, Glassnode argues in a recent report that weak consumer sentiment is driving money into equities, particularly those related to AI, while BTC is clearly being overlooked at the current stage.
Weak consumer confidence is accelerating a shift of capital from cash assets to equities, AI-related assets, and commodities, as investors seek higher returns by investing in riskier assets.
Bitcoin Stays Outside This Rotation!
The most important point highlighted by Glassnode is that Bitcoin is not benefiting enough from this capital movement.
Glassnode notes that Bitcoin is trading at roughly half the level of its peak seen in October 2025 and has lagged behind the stock market throughout the summer.
According to the analysis company, this is particularly noteworthy because one of Bitcoin’s investment theories is that it benefits from investors turning to scarce assets during periods of decreased confidence in traditional assets.
However, in the current scenario, capital is following assets that are showing growth rather than Bitcoin. At this point, Glassnode states that it evaluates the current situation as “money following assets that are already moving.”
What are the Critical Levels for Bitcoin?
Glassnode interprets the current situation as a period where capital flows to US stocks, and especially AI-focused companies, have overtaken Bitcoin, noting that Bitcoin is stuck between the midpoint of its realized on-chain costs of approximately $63,000 and the average cost level for short-term investors of $68,700.
According to the analysis firm, regaining the $68,700 level with strong volume and ETF inflows could be a significant sign of recovery in the Bitcoin market. Conversely, losing the June low of $58,500 could increase the risk of BTC testing even lower levels.
Glassnode’s latest assessment indicates that while there are some signals suggesting sellers are getting tired of Bitcoin, there isn’t yet enough evidence to suggest a strong return of new buyers to the market.
*This is not investment advice.
