The sentiment on Wall Street towards Bitcoin has shifted drastically from optimism to skepticism, as observed by Alex Thorn, head of research at Galaxy Digital. This change is not due to any conspiracy theories or specific bearish events, but rather a result of waning demand, increased selling by long-term holders, and a lack of new narratives in the market.
Thorn dismissed the notion that firms like Jane Street are responsible for Bitcoin’s decline, labeling it as “Twitter cope.” He emphasized that the frustration stems more from price fluctuations rather than intentional manipulation.
He questioned the logic behind suppressing Bitcoin’s price, stating that it is a multi-trillion-dollar asset that is challenging to manipulate due to its size and the nature of the free market.
The popular trade of being long on Bitcoin, which dominated late 2024 to the period surrounding the US election, lost its appeal as capital flowed into other sectors like AI-linked equities, semiconductor stocks, and gold. This shift, combined with consistent selling by long-term holders, contributed to Bitcoin’s loss of momentum.
Thorn highlighted that the distribution of coins by whales is a natural process that contributes to the asset’s maturity. He argued that selling at higher prices is beneficial for the network’s growth and adoption.
Despite the negative sentiment from institutional investors, Thorn emphasized the importance of focusing on Bitcoin’s fundamental purpose as a store of value rather than short-term market fluctuations. He underscored the need for investors to understand Bitcoin’s value beyond speculative trading.
In conclusion, while Wall Street may currently hold a negative view on Bitcoin, the long-term battle lies in establishing Bitcoin as a reliable store of value rather than a temporary macro trade. The article closes with Bitcoin trading at $66,109.
(Image source: TradingView.com)