Bitcoin Sentiment On Wall Street Has Turned | Crypto News
Wall Street’s angle toward Bitcoin has flipped from euphoric to deeply skeptical after last 12 months’s crowded long commerce unraveled, according to Galaxy Digital head of research Alex Thorn. In an interview on What Bitcoin Did, Thorn said the shift has less to do with conspiracy theories or a single bearish catalyst than with exhausted demand, heavy long-term holder promoting, and a market now struggling to discover a contemporary narrative.
Thorn pushed back on claims that corporations such as Jane Street are to blame for Bitcoin’s weak point, calling that line of pondering “Twitter cope.” He argued that most of the outrage displays frustration with price motion quite than evidence of deliberate suppression.
“What do we think the actual incentive would be for them to suppress the price?” Thorn said. “Bitcoin’s a multi-trillion, well whatever it is, one-point-something-trillion-dollar asset. It’s hard to manipulate markets of scale in a specific direction because it is a free market and it’s a large one.”
Why Wall Street Is Wrong On Bitcoin
His broader clarification was more easy. From late 2024 through the period between the US election and inauguration, he said, being long Bitcoin was “the most popular trade in the world.” That modified as capital rotated elsewhere. AI-linked equities, semiconductor names, power performs, quantum shares and gold all started attracting consideration, while Bitcoin’s momentum pale.
At the same time, Thorn said, long-term holders had been constantly distributing cash into strength. He described that promoting as structural quite than alarming. “That’s literally how distribution occurs and it’s how you make money in a trade,” he said, arguing that older holders taking features is an element of Bitcoin’s maturation quite than a signal of failure.
He went additional, framing the whale distribution as constructive for the community over the long run. “Technically you want more selling. You want it distributed to people who buy it at a higher cost basis,” Thorn said. “The realized price is higher and that’s a good thing. That means people, with enormous amounts of money, are willing to buy Bitcoin at really high prices. To me that’s a core signal of adoption.”
Still, Thorn acknowledged that sentiment has deteriorated sharply, particularly among skilled buyers. In his view, Bitcoin’s failure since September to behave like “digital gold” broken the story many allocators had purchased into. Wall Street, he said, took that label too actually.
“We didn’t imply it was going to commerce with a high beta to GLD,” Thorn said. “Its features are gold-like. Its trading behavior hasn’t fully caught up to that yet. The delta between those two things, if you believe it eventually closes, that’s your alpha.”
That mismatch has helped bitter institutional temper just as broader macro fears have worsened. Thorn said buyers are anxious about AI from both instructions: that it might fail to justify huge capex, or succeed so completely that it destroys jobs and destabilizes markets. If equities roll over on the back of that uncertainty, he urged, Bitcoin could battle to keep insulated.
Even so, Thorn drew a line between short-term sentiment and long-term conviction. “We really should focus on explaining its fundamental purpose and use cases and value to a holder of Bitcoin as the reason that it goes up,” he said. “Stop begging for Jay Powell to buy your bags. That’s not nearly as durable as the reason it going up being that people deeply understand the savings technology that is Bitcoin.”
For Thorn, that is the real story now: Wall Street could have turned unfavorable, but the longer-term battle is still about whether or not more buyers come to see Bitcoin as a sturdy store-of-value asset quite than a passing macro commerce.
At press time, BTC traded at $66,109.
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