Crypto researcher Gideon presented an unpopular opinion, stating that retail investors are unlikely to drive the ongoing bull run and Bitcoin BTC/USD broke an all-time high due to ETFs.
What Happened: Gideon argues that the current bull market differs from the 2021 cycle, as most of the global population is no longer confined to their homes with stimulus checks, as was the case during the pandemic. He points out that Bitcoin broke new all-time highs with the buying power of ETFs, not retail investors, and that retail interest and savings are currently low.
He also suggests that the simple strategy of buying and holding may no longer be effective, as the market remains PvP (player vs. player) with supply exceeding demand and attention constantly shifting to new plays.
He suggests traders take a position in sectors that institutions favor, such as Real-World Assets, AI, DePIN, and BTCfi (L2s, Runes, Ordinals). He adds that the best performers will be those who trade attention and hold bags in hot narratives for a maximum of one to three months, taking profits more aggressively and compounding 3-5x gains with size.
The AI Crypto coins like Bittensor TAO/USD, Render RNDR/USD, and Pendle PENDLE/USD are termed as long-term bags.
Price Action: At the time of writing, BTC is trading at $62,370, down 1.1% over the past 24 hours.
Also Read: If Bitcoin Starts ‘Losing The Lows’ It Could Get ‘Ugly’ And ‘Violent,’ Traders Warn
Why It Matters: Gideon’s insights provide a valuable perspective on the potential dynamics of the upcoming bull run and the importance of adapting investment strategies to the changing market landscape.
He suggests focusing on sectors favored by institutions and adopting a more active trading approach. This will lead to investors better positioned to capitalize on the opportunities presented by the 2024-2025 market cycle.
However, he cautions investors against relying on top signals from retail investors as it may not hold well in an institutional-driven bull market. Citing QuantMeta, Gideon reiterates that "what was an obvious top signal in 2017 wasn’t in 2021, and the same goes for 2024-25."
The researcher’s emphasis on easy-to-understand narratives, such as memes and AI, highlights the potential for these sectors to gain significant traction.
What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.
Read Next: Sell Bitcoin In May And Go Away? Here’s How You Could Have Pocketed A 1,449% Cumulative Return
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image created using artificial intelligence with Midjourney.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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