Bitwise shares insight: institutional investors are looking at B... (Both laugh)

Bitwise points out that the institution sees bitcoin as gold, but chooses to invest in tech stocks.

What's this about?
Data from Bitwise indicates that institutional investors view bitcoin in much the same way as gold, either as a store of value or as an instrument for distributing port but when it comes to actually making a purchase decision, many behaviors are more akin to technology equity investments than traditional gold: they weigh market momentum, news flow, risk and capital movements over stability.

Why is that important?
Institutional investors are a large group of capitalists, so when institutions view digital assets as gold, but investing in technology stocks, the market can be affected by two things: one is that structural demand drives interest in digital assets; the other is that volatility remains high because impulse buying may cause money to flow out quickly and prices respond to news more than long-term fundamentals.

Why does the institution consider bitcoin to be gold?
Gold is often used as a hedge against the risks of inflation, economic uncertainty and currency depreciation. Bitcoin has similarly been proposed as a digital asset with limited supply that does not depend on central banks and helps to spread risk away from original assets.[citation needed] When institutions began recognizing cryptocurrencies as an asset class, bitcoin was positioned as "digital gold".

But why is the buying process so similar to tech stocks?
Technology stocks are often assets that rise in price with history, user acceptance, regulatory risk and market volatility. Institutional investors who buy technology stocks may enter when business models become clearer and sell or dilute as the risk increases; institutions' treatment of bitcoin similarly reflects that even though it is called gold, markets still value bitcoins as an asset prone to news coverage, image shifts and policy decisions over gold which has a much longer historical past.[citation needed]

What's the impact on Thai market?
For Thai readers, this image helps to understand that digital assets in Thailand are still under the control of the SEC (Thailand) and trading through platforms such as Bitcube. Even though foreign institutions may talk about Bitcoin as gold, global price movements also affect retail investors via disclosure of status, security risks and incoming news at the same time, preparation for regulatory information, account security and customer history is important enough to analyze prices.

What's the point of this information?
The point is not to conclude that bitcoin is gold or tech stocks, but to warn that the nickname may be inconsistent with actual behavior. When institutions use a golden framework for asset positioning while using a technology stock framework for risk management, markets are still highly volatile and responsive to news, so readers should distinguish between long-term beliefs and real buying decisions, and follow up on information from clearly identified sources.

This article was originally published in Foreign Cryptocurrency News.