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Macro analyst: the mechanisms that fueled Bitcoin’s growth have exhausted themselves
Macroeconomic investment analyst Jim Bianco believes that if Bitcoin does not move onto new tracks, it risks remaining on the sidelines of the financial world without catalysts capable of supporting its future price growth.
Bianco explained that markets behave like discounting mechanisms, meaning they price in scenarios long before events actually occur. In his view, the move that lifted Bitcoin from $25,000 to $126,000 was a “TradFi rally” that has now ended. BTC’s rise to new records last year was part of a “zombie rally,” as he believes that “smart money” began leaving crypto as early as December 2024.
According to his position, this explains why Bitcoin failed to strengthen again even amid positive news, despite discussions of cryptocurrency regulation supported by the Trump administration.
Walmart accepting cryptocurrency? Good news, but it was already priced in several months ago. Even old correlations — the depreciation of the dollar and tech stocks — are breaking down. The market has reset the entire “adoption” narrative. The winter will continue until a new concept emerges, potentially tied to replacing financial institutions with fully independent crypto services.
The next stage is the creation of an alternative financial system (BTC/DeFi/stable cryptocurrencies) that will make traditional financial instruments irrelevant, the expert concluded.
This view is understandable in its own way, but controversial. The fact is that Bitcoin has long been used as a store of value, which, if exchanged into fiat currencies, is typically for significant purchases rather than for going to a restaurant, supermarket, or coffee shop.
That is why fast payment solutions, particularly the Lightning Network, are not yet widely popular. Moreover, so-called smart money is actively accumulating BTC during downturns, recognizing its fundamental advantages.
Speculators, undoubtedly, exited cryptocurrencies while conducting manipulations in the gold and silver markets, which also entered a serious correction. Their pump was followed by the expected dump.
See also: "Bitcoin decline has made ETF investments unprofitable — CryptoQuant"
