The Rise of Digital Assets

The digital asset landscape is experiencing a radical transformation. For example, Bitcoin, by breaching the mark of 100K, has reached a market capitalization of $2 trillion, and is “one of the largest and most liquid individual assets in the world”. Even if it’s just about 0.2% of global capital, it has all the conditions to keep growing.

The Digital Money Revolution
Over 80% of the world's population lives in developing countries facing currency instability, seeking alternatives to preserve their wealth. Digital assets provide an unprecedented solution: infinite value density through "12 memorized words”, allowing borderless transactions between two internet-connected points.

• Correlation with Global Liquidity: Bitcoin tends to rise during periods of credit expansion and decline during contractions. Showed a correlation of 83% over 12-month periods (see graph)

• Price-to-Cost Basis Ratio: The marginal price can differ from the real value. Historically, buying near the cost basis has been a good opportunity.

• HODLer Waves: During bear markets, long-term holders accumulate bitcoin, creating a supply shortage that drives prices higher in bull markets.

Shifting Geopolitical Landscape
The geopolitical context has dramatically shifted in favor of digital assets. El Salvador and Bhutan now hold Bitcoin as sovereign reserves, while other nations quietly accumulate positions. The SEC's forced approval of spot Bitcoin ETFs and Trump's pro-crypto stance signal a major de-risking of the asset class.

This political evolution, combined with increasing institutional acceptance, contrasts with the previous regulatory uncertainty. Countries that initially opposed crypto are now reversing course, recognizing the futility of trying to ban what is essentially a decentralized spreadsheet.

Source: Lyn Alden

Disclaimer: This content is for information and education purposes only and it is not intended to serve as investment, financial, tax or legal advice. Do your own research before investing.