Bitcoin’s $90k Rejection: Is Btc's Digital Gold Narrative Losing To...

Bitcoin's recovery relied on a shift toward the "digital gold" narrative, but global growth risks and strong equity markets have delayed that breakout.

Bitcoin failed to break $90,000 again as investors favored gold and bonds.

S&P 500 record highs and lower interest rates have reduced Bitcoin’s appeal as a hedge compared to traditional equities.

Bitcoin (BTC) faced strong rejection near $90,000 on Monday, triggering nearly $100 million in liquidations across leveraged positions.

Strong demand for traditional hedges such as gold and US government bonds led traders to question whether Bitcoin has the momentum needed to reclaim the $100,000 level.

Gold prices held above $4,300 on Monday, while yields on the 2-year US Treasury fell to their lowest level since August 2022. Rising demand for government-backed assets signals broader risk aversion, particularly as the US fiscal deficit is expected to widen in 2026. The US Treasury also faces the difficult task of rolling over roughly $10 trillion in debt throughout the year.

Jimmy Chang, chief investment officer of the Rockefeller Global Family Office, reportedly told Reuters:

Meanwhile, the negative impact of US import tariffs on economic growth has been offset by massive spending on artificial intelligence infrastructure, according to Yahoo Finance.

Investor sentiment has deteriorated since the US Department of Labor reported the November US unemployment rate at 4.6%, the highest level in four years. Under normal circumstances, such data would lead traders to raise expectations for a more aggressive stimulus stance from the US Federal Reserve (Fed). But this time, inflation risks have become a significant constraint.

Even so, the S&P 500 surged to a new all-time high in December, adding to discomfort among Bitcoin investors. If the Fed continues to trim interest rates, equities tend to move higher due to the direct impact on corporate balance sheets.

Source: CoinTelegraph