This article first appeared on GuruFocus.

Bitcoin’s (BTC-USD) slide is turning into one of the most intriguing divergences in global markets. While the Federal Reserve pushed through a quarter-point rate cut and expressed optimism about the US economy lifting the S&P500 by 0.7% to its strongest Fed-day gain since March Bitcoin moved the other way, falling as much as 3.2% in Asia hours and briefly breaking below $90,000. The drop came on the heels of a weeks-long selloff that began in early October when a major liquidation erased about $19 billion in levered bets, placing crypto traders on a far different footing than investors in traditional risk assets.

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Through early morning in New York, Bitcoin had recovered part of the slide to trade down around 2.3% at $90,260, with Ether lower by roughly 4.3%. But the narrative forming around this market is one of hesitation rather than relief. FalconX derivatives specialist Sean McNulty described the setup as a clear decoupling, pointing to $88,500 as the next level on traders’ screens and $85,000 as a possible line that could reshape sentiment if tested. Even the sudden resurgence of ETF demand $224 million of net inflows on Wednesday, including $193 million into BlackRock’s iShares Bitcoin Trust, its strongest haul in 30 days wasn’t enough to keep the token above $94,000. Strategy Inc.’s acquisition of 10,624 tokens worth $962.7 million between Dec. 1 and Dec. 7, its largest purchase since July, also struggled to shift the tone, suggesting the market may still be absorbing persistent structural selling.

Underneath the spot moves, derivatives markets are offering their own signals. Funding rates in perpetual futures the deepest pool of Bitcoin trading activity turned negative during Asia hours, indicating bearish traders are now paying bullish counterparts to hold short positions. And while Bitcoin recently rebounded from a capitulation low of $80,537, IG Australia analyst Tony Sycamore warned that the setup could still allow for a turn lower and for a retest and break of that level. With crypto lagging while equities gain momentum, investors are watching whether this gap narrows or becomes the defining tension heading into year-end.