Grayscale Bitcoin Mini Trust ETF

BTC

Market cap $3.96B

The recent slide in the price of Bitcoin has weakened the argument that it should be viewed as "digital gold." Historically, Bitcoin has tended to move in four-year cycles, punctuated by periods of boom and bust.

Even as market sentiment turns bearish, institutional adoption of Bitcoin continues to pick up. Bitcoin has a long track record of bouncing back from market downturns.

Bitcoin's most attractive characteristic is its hard supply cap of 21 million units, which is unlikely to ever be altered. Increasing levels of global liquidity, as shown by rising debt and money supply, will keep propelling Bitcoin.

Michael Saylor argues Bitcoin is the "one chair" worth sitting on, but is it? I think most investors need multiple "chairs", with Bitcoin exposure limited to 15-30% of their portfolios. A 100% allocation to BTC is not advisable; historical data shows excessive volatility and risk of significant capital loss in bear markets. Bitcoin remains the most asymmetric long-term bet for investors convinced it will mature into a global reserve asset, but minimal exposure (1-5%) to BTC offers little upside today.

Reiterate Buy rating on Bitcoin despite recent drop below $90,000, viewing current fear as a buying opportunity. BTC's investment thesis remains intact: crypto-friendly policies, ETF flows, and institutional adoption continue to support long-term upside. Technical indicators show low RSI and declining exchange balances, historically signaling strong future price appreciation for BTC.

Wall Street is loading up on a few of the major cryptocurrencies. Bitcoin, Ethereum, and Solana are currently the favorites.

It takes a lot of electricity to mine Bitcoin. When electricity costs are high, it can be unprofitable to mine.

Top Nvidia customers, including Google, Amazon, and Microsoft, are all developing their own AI chips to reduce their dependence on the chip giant. Bitcoin doesn't need to justify earnings multiples or fight off competitors since it operates as digital gold rather than a business.

Institutional adoption of Bitcoin is growing at a record pace, leading to a $1.2 million price target. Some investors view Bitcoin as digital gold due to its ability to act as a long-term store of value.

Bitcoin's circulating supply continues to contract as ETFs, corporate treasuries, and long-term holders absorb a growing share of total coins. Bitcoin's role as collateral and benchmark asset across stablecoins and lending products is expanding its monetary premium. The SEC's in-kind redemption approval allows ETFs to hold Bitcoin directly, thereby reducing liquidity and slowing market velocity.