Down 44%, the Market Is Dumping Bitcoin: Here Are Its 3 Biggest Trillion-Dollar Competitive Risks

By Neil Patel – Mar 9, 2026 at 12:51PM ESTKey PointsAs a global and neutral asset, Bitcoin is fighting for capital from other asset classes.There are gargantuan pools of capital allocated to the AI boom, U.S. residential real estate, and Treasuries.Bitcoin investors’ patience and discipline are always being tested, so it’s important to focus on the next decade.The critics are cheering from the sidelines. Bitcoin (BTC +2.40%) isn't holding up to its perception as a store of value and hedge against macro and geopolitical uncertainty. As of March 5, it trades 44% off its peak from last October. Financial markets are complex, so it's not always easy to find a clear explanation for any asset's price action. While I believe the superior cryptocurrency has immense long-term upside, it's facing three big trillion-dollar competitive risks right now. Image source: Getty Images. Bitcoin is fighting for capital In the past decade, Bitcoin has skyrocketed almost 18,000%. It now commands a meaningful $1.4 trillion market cap. And given its neutral, digital, and decentralized nature, it competes for capital on a global level. This pits it against large pools of capital that can draw attention away from Bitcoin. For starters, nothing has captured the imagination of investors more recently than the artificial intelligence (AI) boom. Some of the most dominant businesses we've ever seen are going all in, sparing no expense to build computing capacity to develop this technology. The ultimate payoff is highly uncertain. But the market is bullish, exhibited by the "Magnificent Seven" group's total market cap of $20 trillion, representing about one-third of the S&P 500 index, according to the latest research by The Motley Fool. Domestically, the U.S. housing market is a massive capital magnet estimated to be worth $55 trillion as of last June. The 30-year fixed mortgage rate is 6% for the first time since 2022. If rates continue dropping, home values could get a lift. For middle-class Americans, homes are a leading store of wealth. Another trillion-dollar competitive risk is in U.S. Treasuries, which carry a nominal value right now of $29 trillion. This is an extremely liquid market. And they're backed by the full faith and credit of the U.S. government, making them an essential reserve asset for central banks around the world. Bitcoin's scarcity is what matters in the long run Because Bitcoin is liquid and has a constantly updated market price, coupled with the fact that the vast majority of investors still view it as a risk-on asset, it's going to remain volatile. It's hard to imagine that the buyers that entered the market in the past couple of years, whether individuals, institutions, or governments, have as much conviction as earlier investors. This just means they might be quicker to sell when there's turmoil. The backdrop is nothing new. Bitcoin has always competed with other capital, whether it comes from stocks, real estate, Treasuries, or anywhere else. Patience will always be tested. But what matters is that nothing has changed from a long-term fundamental perspective. Bitcoin is the scarcest asset out there. And a decade from now, its price should be significantly higher.Read NextMar 9, 2026 •By Alex CarchidiSports Betting or Crypto: Which Is the Bigger Gamble for Your Hard-Earned Cash?Mar 9, 2026 •By Alex CarchidiHere's What Would Need to Happen for Bitcoin to Flip Gold SomedayMar 9, 2026 •By Dominic BasultoTraders Are Paying Just Pennies for "Yes" on $150,000 Bitcoin by March -- What That Implies for the Next Leg of This RallyMar 8, 2026 •By Dominic BasultoBitcoin Has Only a 5% Chance of Hitting $150,000 by June, According to Prediction Markets -- Here's Why I'm Not Taking Those Odds at Face ValueMar 8, 2026 •By Neil PatelBetter Crypto Buy: Bitcoin vs. XRPMar 8, 2026 •By Alex CarchidiGot $1,000?

Should You Buy Bitcoin or Cardano?About the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedBitcoinCRYPTO: BTC$68,509.00(+2.53%)+$1,689.72S&P 500 IndexSNPINDEX: ^GSPC$6,723.56(-0.24%)-$16.46*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.