Bitcoin’s incredible growth — and the altcoins that followed — was mostly driven by retail investors. Half of them were Bitcoin enthusiasts, while the other half were just in it to make money. Both groups mostly just held their investments, cashing out occasionally.
Then speculators entered the crypto market, boosting the growth of crypto derivatives. Once the trading volume of crypto derivatives overtook spot trading, institutional investors started coming in seriously.
It’s easy to see why big players got interested. By then, Bitcoin and altcoins had gained major media and social media attention, built a large fan base, and attracted even more people thanks to FOMO. Speculators provided the liquidity and hedging tools that made it all possible.
But institutions don’t like high volatility. That means crypto enthusiasts should forget about Bitcoin doubling in price after every halving. Crypto is gradually turning into a more ordinary asset, much like stocks or forex.
I don't think such logic applies to Bitcoin. Right now, institutional investors are buying more of BTC's circulating supply than the rate which of new coins are mined. There will be a supply shock, effectively "pumping" market prices all the way to the moon (or Mars for that matter). There's still a high chance to "make bank" with Bitcoin. Soon, the market will turn bearish, leaving you with the opportunity to buy BTC at a huge discount.
If history repeats itself, Bitcoin will turn bearish within the next 1-2 years (2026-2027). That's right before the next block reward halving. Institutional investors may have a lot of capital at their disposal, but they can't keep "pumping" market prices forever. At some point, they will run out of money, forcing them to sell BTC for Fiat. But what should I know? I'm not an economics expert. So I could be wrong...