At the Coinbase Summit in New York, Coatue Management founder Philippe Laffont discussed the changing role of Bitcoin in investment portfolios.
Bitcoin Volatility and Investor Interest
Laffont noted that Bitcoin's volatility has decreased significantly compared to previous years. This change has led Coatue Management to rethink its stance on investing in BTC. He stated, 'The cost of entry into Bitcoin may be decreasing. If beta is decreasing, that would be really interesting.'
Comparison of Bitcoin and Nasdaq
Laffont mentioned that Bitcoin has become a more resilient asset compared to traditional markets. 'Bitcoin is down only 5%, while Nasdaq is down more than 6%,' he said, highlighting Bitcoin's changing resilience to market events.
Long-term Outlook for Bitcoin
Laffont pointed out that Bitcoin's share of total global wealth is still low, at around 0.4%. However, he believes this number will increase in the future. 'If people continue to believe that Bitcoin is valuable, then that asset will become more valuable over time,' he added. He also advised caution in investing in Bitcoin, stating, 'Even if you think Bitcoin is going to be important, don't put a large portion of your portfolio into it.'
Philippe Laffont expressed the view that Bitcoin is becoming an increasingly central asset in investment portfolios, but recommended approaching its acquisition with caution.
