Bitcoin Slumps Over 40% From 2025 High Amid Rising Bearish Doubts

Bitcoin (BTC) has tumbled more than 40% from its October 2025 peak, even as the S&P 500 rallies to record levels, intensifying debate over the cryptocurrency’s investment value. The divergence has spotlighted three bearish arguments: a single-buyer concentration risk tied to MicroStrategy (MSTR), deteriorating correlation with equities, and a threat from rival privacy coin Zcash (ZEC). MicroStrategy holds roughly 843,738 bitcoin, or 4% of the maximum supply, fueling fears that a halt in purchases or a fire sale could crush prices. However, the company’s demand represents just 7% to 9% of net inflows. A more immediate concern surfaced in late May 2026, when spot Bitcoin ETFs suffered $1.5 billion in net outflows, the worst exodus since 2026. Meanwhile, the SPDR S&P 500 ETF (SPY) has gained nearly 27% over the past year, while Bitcoin’s correlation with the index turned negative. Privacy-focused Zcash surged from an all-time low near $16 in mid-2024 to $574 on May 28, 2026, attracting capital as a perceived superior store of value. Yet its $9.5 billion market capitalization is less than 1% of Bitcoin’s $1.5 trillion, and the two can coexist in portfolios, tempering displacement fears.