Bitcoin drops 35% amid bearish options flows and rising interest rates pressure.

Bitcoin has fallen 35% over the past year, creating the widest performance gap versus the Nasdaq-100 since 2019. Options trading shows growing bearish sentiment, with more puts than calls on crypto equities like iShares Bitcoin Trust and Michael Saylor's Strategy. Factors include Strategy selling bitcoin after four years, investors preparing for IPOs, and shifting interest to alternative crypto derivatives. Rising interest rates remain a key pressure, as seen in past crypto downturns during Fed hikes, suggesting scarcity assets like bitcoin are losing favor compared to stocks driven by innovation and productivity.