Bitcoin News Today: Bitcoin Dips Below $90K as Correlations Shift Amid Bull-Bear Split

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Peter Schiff, the outspoken economist and gold advocate, has declared that the Bitcoin trade is over, citing its inability to rise alongside tech stocks or gold. His comments, posted on X on December 22, reflect growing skepticism about the cryptocurrency's future performance as a safe-haven or inflation-hedge asset. Schiff argues that if Bitcoin can't benefit from the same tailwinds as traditional market drivers, its rally has likely reached its peak.

Bitcoin's price recently dipped below $90,000, despite a broader market environment where the Nasdaq Composite and gold have both reached record highs. Schiff's analysis centers on Bitcoin's shifting correlations—its relationship with gold has turned sharply negative, while its link to tech stocks has strengthened. This divergence raises questions about whether Bitcoin is still operating under the same economic logic as it did during previous cycles.

Meanwhile, Bitcoin bulls counter that the cryptocurrency remains a unique asset class, reacting to different macroeconomic signals. Willy Woo, a well-known Bitcoin advocate, noted that Bitcoin functions as a "risk-sensing instrument," often leading other assets into bear markets. He suggested that Bitcoin's recent behavior could indicate it's already priced for a downturn that other assets are yet to reflect.

Why the Standoff Happened

Schiff's argument hinges on the idea that Bitcoin should behave like a traditional store of value or speculative asset if it's to continue its upward trajectory. However, recent data shows Bitcoin's movements have diverged from gold, which has surged past $4,400, and from the Nasdaq Composite, which has continued to rally. The correlation between Bitcoin and gold has dropped to -0.57, a stark contrast to its previous positive relationship.

Bitcoin's correlation with the Nasdaq Composite has risen to 0.66, suggesting a growing alignment with tech-driven growth assets. This shift is being interpreted by some as a sign that Bitcoin is becoming more integrated with the broader risk-on environment, while others see it as a loss of its unique value proposition.

What Analysts Are Watching

The debate over Bitcoin's future has intensified as several companies tied to the cryptocurrency space report mixed results. For example, NIP Group reported a 55.5% year-over-year revenue increase in Q2 2025, driven by talent management and event production, but also posted a $136.3M net loss due to non-cash impairments. The firm now projects an annualized revenue run rate of $300M, with $200M coming from Bitcoin mining operations.

Meanwhile, Fold Holdings and BitFuFu have shown resilience in Bitcoin-related operations. Fold reported a 41% YoY revenue increase in Q3 2025 and plans to launch a Bitcoin Rewards Credit Card in early 2026. BitFuFu, on the other hand, reported its highest quarterly revenue ever—$180.7 million—while expanding its cloud and self-mining operations. These developments suggest that while Bitcoin's price may face volatility, the broader ecosystem continues to grow.

Risks to the Outlook

Despite the positive financial reports from some Bitcoin-linked firms, the broader risks to the cryptocurrency remain. Core Scientific, which has shifted focus from Bitcoin mining to AI infrastructure, reported a 16% drop in revenue and a $6.1M adjusted EBITDA loss in Q1 2025. The company's struggles highlight the challenges of transitioning from one high-growth sector to another, especially in a capital-intensive industry like crypto mining.

Moreover, Bitcoin's price volatility remains a concern. While it has gained 240% over the past five years, it's currently about 29% below its October high of $126,000. Schiff's prediction of a Bitcoin crash to $50,000, if it were to happen, would represent a drawdown of over 40%, a significant hurdle for both retail and institutional investors.

What This Means for Investors

For investors, the Bitcoin debate underscores the need to differentiate between long-term fundamentals and short-term price swings. While Schiff and others argue that Bitcoin has lost its edge, companies like NIP Group and BitFuFu are investing heavily in Bitcoin-related infrastructure and revenue streams. This suggests that even amid price uncertainty, the underlying business models connected to Bitcoin are still evolving.

Bitcoin's future may depend less on its correlation with gold or the Nasdaq and more on how effectively it can adapt to changing macroeconomic conditions. Whether it will hold its place as a digital store of value or shift toward becoming more of a speculative or tech-linked asset is a question still being answered.