Bitcoin has experienced significant volatility recently, down about 22% from an all-time high reached in October. Experts weigh in on the current state of the cryptocurrency market, attributing price movements primarily to the fundamentals of supply and demand. John, an analyst, emphasizes that Bitcoin remains a strong long-term investment despite its recent downturn, highlighting its impressive year-on-year returns of approximately 35% to 40%. He advocates for a dollar-cost averaging strategy for investors looking to buy into Bitcoin, suggesting that purchasing during market corrections can be a sound approach.
Other cryptocurrencies have seen similar declines; Ethereum is down about 35%, and Solana has lost half its value. Mark notes that a significant event on October 10th—a flash crash that resulted in around a quarter of crypto market makers going out of business—played a critical role in the recent downturn. He suggests that regulatory developments, like the potential signing of the Clarity Act for cryptocurrency regulation, as well as broader market conditions, influenced the current landscape.
In response to the question of Bitcoin’s purpose, Dan describes it as more than just digital gold, positioning it as a risk asset with high volatility. He compares Bitcoin to the VIX index on the Nasdaq, emphasizing its potential to outperform significantly if one has faith in long-term growth. Dan cites a price target of around $150,000 for Bitcoin by 2027 based on projections for companies like MicroStrategy.
When addressing the vast market potential for Bitcoin compared to gold, John acknowledges the analysis provided by Michael Saylor, who predicts that Bitcoin will eventually surpass gold as an asset class by 2035. He agrees with Saylor’s reasoning around the limited supply of Bitcoin and compares its potential scarcity to that of other commodities.
With increased institutional interest, Bitcoin’s ownership is shifting. John estimates that about 50% of Bitcoin is institutionally owned, highlighting the growing trend of large investors entering the market through products like exchange-traded funds (ETFs).
As the conversation moves toward investment opportunities, Mark suggests looking into companies like Galaxy Digital and Hut 8, which are hybrid firms focusing on both cryptocurrency and AI. These firms are strategically positioned to capitalize on the convergence of energy use for Bitcoin mining and AI data centers.
Dan also shares attractive picks for clients heading into 2026, including Robinhood, which he believes is poised to exploit a large total addressable market, and a firm focused on offering credit alternatives to younger demographics. He further names eToro as an underappreciated player gaining traction.
The panel cautions investors about potential risks, identifying market timing as a critical concern while acknowledging the positive regulatory developments in the cryptocurrency space. They conclude that both Bitcoin and AI are still in early stages, urging flexibility and open-mindedness as the sectors continue to evolve.
