I saw a podcast recently that made a lot of sense to me on why this crypto bull market cycle is very different from the past Regular retail are not the ones moving this market Institutions, pension funds, sovereign wealth funds, hedge funds, corporations, and also retail but more capitalized They are not investing in bitcoin to get a 1000% or 10,000%+, but to allocate some portfolio value away from bonds or real estate both of which are not doing too well A retail that is a millionaire allocates 5-10% of net worth into bitcoin at $110k/btc The current pullback from ath is a non-event Multiply that mental mindset by a factor of 1000x in relation to the other cohorts, If bitcoin goes down to $110k these investors will add to their positions not sell and be scared away like regular retail When bitcoin goes to $200k, they will allocate more, having more confidence that bitcoin is the best store of value portfolio allocation asset Bitcoin is a $2+ Trillion global monetary asset. This is fact. This is normalized
Exactly why volatility has declined over time, but also why BTC moves overall whichever way markets go.
Bitcoin is starting to decouple from stocks. I've seen the stock markets go down while Bitcoin goes up lately, and it's going to happen more and more which will eventually make Bitcoin a safe haven asset
Yesterday stock market was down a lot and bitcoin was also down and gold was up, but there was a screenshot I posted about a month or so ago when bitcoin was up a lot and gold was up also and stock market was down Bitcoin is a safe haven asset but a lot of the institutional investors still do not see it that way But let's talk about these institutional investors and hnw investors, they need allocation to bitcoin Bitcoin does not have earnings, it operates on supply and demand... There's $1 Quadrillion of wealth in the world, bitcoin is 20 bps of that wealth $2 Trillion, Blackrock says bitcoin should be 5% portfolio allocation, Rick Edelman says 10% minimum up to 40% i As Rick Edelman says, based on modern portfolio theory, get off 0% now, in 5 years, you will be ahead of the 99% of the world that is currently short bitcoin 5% (Blackrock) puts bitcoin at $2.5M/btc 10% = $5M/btc