Crypto is no longer that separate an asset class like stock. It is still back to supply and demand and unlike stocks, crypto do not have fundamental growth potential. The value rose as it gets more scarce. Although it has some use cases, that has yet to fully take off to drive further demand and the price.
So, if the US government shifts gears to be less pro-crypto, sentiment and demand will drop. Crypto will be less in demand and liquidity will drop especially with the current already high price that can be prohibitive.
Given the volatile nature of crypto, I doubt institutional and retail investors will allocate large portions of their portfolio as many will also keep an eye on policy and the global economy.
I think MSTR is overvalued with current flux in policy and also the potential risk of it being delisted from MSCI which will force selling to re-balance the index.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
4
Report
Login to post
- richegg·01-12 21:19Spot on! Policy shifts could kill crypto demand. MSTR's overvalued risk is real. [惊讶]LikeReport