Bitcoin's Identity Crisis Deepens Amid Price Decline and ETF Outflows

Bitcoin's recent price drop and ETF outflows are causing concerns in the digital asset market. The cryptocurrency's long-held status as 'digital gold' is under scrutiny as its value falls below 40% of its recent highs, leading to a loss of market capitalization.

The decline has sparked an identity crisis among investors and experts. Traditionally, Bitcoin was seen as a hedge against inflation and fiat currency devaluation due to its limited supply. However, gold's recent gains and the influx of capital into alternative cryptocurrencies are challenging this narrative.

ETF outflows have also undermined institutional trust in Bitcoin. Prominent U.S.-listed spot Bitcoin ETFs have reported series of withdrawals, rather than attracting new capital as expected. This trend indicates growing caution among major players.