【Bitcoin is no longer a speculative toy, but a large pool for asset allocation.】
The performance of Bitcoin yesterday disappointed many bears, including myself!
I feel that Bitcoin is no longer a toy for retail investors, but a large pool for institutional asset allocation.
On July 10, Bitcoin soared, breaking through $112,000 for the first time, setting a new historical high.
On July 9, during the late trading session in New York, it broke through the $110,000 mark and the new high from May, reaching a peak of $112,000, with a two-day increase of 3.1%, and an annual increase of 20% already.
From a structural perspective, Bitcoin's underlying structural transformation has been very successful; it has entered a new era of macro assets, no longer a speculative tool for retail investors, but a must-have asset in the eyes of institutions.
Bitcoin's breakthrough of $112,000 relies on the backing of institutional funds, as the investment product transforms into a macro asset; previously, Bitcoin was like a roller coaster, driven entirely by retail investor emotions, with frightening ups and downs.
However, this year, it has been completely different.
Institutional trading firm GSR stated that institutions are continuously buying Bitcoin through the ETE, with demand increasing and performance remaining relatively stable. BlackRock's Bitcoin ETF IBIT saw a net inflow of $120 million in gold ETE on July 9, but $380 million flowed out. This wave of growth is a result of the inflow of ETFs, institutional participation, and the macro environment coming together.
Demand is structural, regulated, and sticky; compared to the frenzy of retail investors in 2021, institutional funds have given Bitcoin more confidence, reducing volatility and increasing its valuation.
