The 'Hedging Paradox' of the Crypto Market: Why is it Falling 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:

In the week prior to the crash caused by the leverage 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Institutional funds have net withdrawn $644 million from U.S. Bitcoin ETFs for six consecutive days, weakening market support.

During the liquidity squeeze, Middle Eastern funds urgently withdrew through stablecoins, exacerbating the selling pressure.