Bitcoin has remained stagnant despite the active growth of other market segments. While the S&P 500 sets records, Bitcoin has not broken through its previous highs.
Bitcoin's Market Behavior
According to Adam Parker, founder of Trivariate Research, Bitcoin's behavior is starting to resemble a more stable market. He notes that Bitcoin now trades in sync with high-quality growth stocks rather than 'hyper-growth junk stocks', influencing its perception as a real asset.
Institutional Investment in Bitcoin ETFs
Despite price stagnation, large investors are actively investing in Bitcoin ETFs. For instance, iShares Bitcoin Trust (IBIT) attracted over $4 billion in the past month, further confirming Bitcoin's growing connection to the traditional financial system, especially through financial products.
Speculation and New Crypto Companies
While Bitcoin prices remain stable, crypto speculation continues. For example, Circle Internet Group, which went public at $31, has surged nearly 500%. However, not everyone views it positively; Kenneth Worthington from JPMorgan assigned the company an underweight rating, highlighting the skepticism surrounding new crypto companies.
Although Bitcoin shows price stability, its appeal to institutional investors remains strong. Meanwhile, new crypto companies continue to spark both interest and doubt within the community.
