Bitcoin is being sidelined in the current market rotation as capital moves into stocks, particularly AI-linked names, as well as commodities and prediction markets, according to Glassnode and CoinDesk. Glassnode said BTC is being overlooked even as U.S. consumer confidence has fallen to a record low and equities continue to hit fresh highs. CoinDesk added that Bitcoin trading activity has cooled, with BTC’s 30-day realized volatility falling to an annualized 42%, while fading market narratives and delays around the U.S. CLARITY Act have prolonged declines in volume and liquidity. The reports said traders are increasingly seeking better return opportunities outside crypto, including on platforms such as Kalshi and Polymarket, while some exchanges and trading firms respond by cutting costs and headcount.