Bitcoin (CRYPTO: BTC) and the broader $2.3 trillion digital asset market are bleeding retail capital as traders aggressively pivot into equities, driven by plunging crypto volatility and a new AI-powered edge in the stock market.

According to new flow data from JPMorgan and Wintermute, the historical relationship between retail stock and crypto buying officially broke down in late 2024.

Instead of buying both as risk-on assets, retail traders are now treating them as direct substitutes.

The correlation has flipped negative. When retail aggressively buys stock market dips, they sit on the sidelines in crypto.

Why The Money Is Moving Out Of Crypto

Retail defined every major crypto cycle…

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