- - Why iShares Bitcoin Trust ETF Stumbled on Monday

Eric Volkman, The Motley FoolDecember 16, 2025 at 1:47 AM

0

Key Points -

The market largely shunned cryptocurrencies and related assets.

This was part of a broader pessimism about the near future of interest rates and the state of AI stocks.

10 stocks we like better than iShares Bitcoin Trust ›

On a blue Monday for its foundational cryptocurrency, iShares Bitcoin Trust ETF (NASDAQ: IBIT) also dipped into negative territory. Shares of the fund fell by 5% in value, on a notable decline not only with Bitcoin but also with many altcoins.

Chomping at the bit for new cuts

Investors clearly aren't feeling very confident about the immediate future of cryptos. Last week's rate cut by the Federal Reserve (Fed) was broadly expected by the time it occurred. Compounding that, the Fed hinted that it might be more resistant to further cuts across the coming months.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »

Person looking at laptop screen with head in hands.

Image source: Getty Images.

While interest rates play a significant role in sentiment regarding risky assets like digital coins and tokens, investors also keep a close eye on other high-risk investments.

One grouping that falls under scrutiny is artificial intelligence (AI) stocks; the more pure-play titles in this basket are rightfully considered relatively high-risk, as they depend heavily on the takeup of the technology.

However, many market players are becoming wary of those pure-plays. Quite a few still don't produce meaningful revenue or profitability, and valuations can be awfully high. Investors have been shedding positions in AI stocks, a trend that was evident on Monday and had a knock-on effect on cryptocurrencies and associated ETFs, such as iShares Bitcoin Trust.

Trust in the future

I think the vaunted January Effect will provide a bit of positive momentum to cryptocurrencies, especially since the low-rate environment remains beneficial for them.

Many institutional investors adjust their holdings that month, and those that want some degree of risk will surely consider loading up with more crypto. When they do, their first choice in many instances will be Bitcoin. I'd look to iShares Bitcoin Trust ETF to rise very early next year.

Should you buy stock in iShares Bitcoin Trust right now?

Before you buy stock in iShares Bitcoin Trust, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and iShares Bitcoin Trust wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $513,353!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,072,908!*

Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 193% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of December 15, 2025.

Eric Volkman has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and iShares Bitcoin Trust. The Motley Fool has a disclosure policy.

Original Article on Source

Source: “AOL Money”