The "Hedging Paradox" of the Cryptocurrency Market: Why Is It Falling Harder Than U.S. Stocks?

Despite Bitcoin often being dubbed "digital gold," its performance during this conflict has been contrary 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 close in panic, triggering a chain reaction.

Institutional funds have withdrawn from the U.S. Bitcoin ETF, with a net outflow of $644 million over six consecutive days, weakening market support.

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