The "Hedging Paradox" of the Cryptocurrency Market: Why is the Decline Worse than U.S. Stocks?

Although Bitcoin is often referred to as "digital gold," its performance during this conflict has been in stark contrast to traditional safe-haven assets. The fundamental reason lies in the tearing of market logic:

A week before the leveraged bubble burst, Bitcoin's open contracts surged by 18%, and 25x leveraged long positions were forced to liquidate in panic, triggering a chain reaction.

Institutional funds withdrew from U.S. Bitcoin ETFs with a net outflow of $644 million for six consecutive days, weakening market support.

In a liquidity squeeze, Middle Eastern funds urgently withdrew through stablecoins, exacerbating selling pressure.