While Bitcoin is stagnant, the rest of the market is racing ahead. Over the past month, as the S&P 500 continues to set new records and new IPOs are exploding at the starting line, Bitcoin has not exceeded its highest point set on May 22.
According to Cryptopolitan on the 30th (local time), Adam Parker, founder of Trivariate Research, told his clients that Bitcoin's behavior is starting to look less chaotic. Adam said, "Bitcoin now seems to be trading slightly differently than before," adding that the coin's movement is now more synchronized with "high-quality growth stocks" rather than "early-stage garbage stocks" it previously followed. He said this change is the reason some traditional finance is starting to treat Bitcoin like a real asset.
Despite price stagnation, institutional investors continue to flow into Bitcoin ETFs. According to FactSet data, iShares Bitcoin Trust (IBIT) has attracted over $4 billion in the past month. Considering the coin's price hasn't moved significantly, this is a massive inflow.
Adam explained this particularly through the expansion of Bitcoin's connection with the traditional financial system through products like ETFs and financial advisor custody products.
He also pointed out a fundamental mathematical problem that could drive prices higher over time. Adam said, "The number of millionaires on Earth now far exceeds the number of Bitcoins," adding that this imbalance between increasing global wealth and Bitcoin's fixed supply could further drive demand. He claimed that some investors believe this asset can still provide returns close to 60% annually, as it has over the past 15 years.
While Bitcoin's price remains stable, cryptocurrency speculation hasn't disappeared. Interest has shifted to names like Circle Internet Group, which rose nearly 500% after listing at $31. Not everyone is convinced by this rise. JP Morgan's Kenneth Worthington gave Circle an underweight rating, despite JP Morgan helping to run the IPO. This contradiction highlights the ongoing skepticism surrounding new cryptocurrency-related companies.
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