Philippe Laffont, founder of Coatue Management, believes that Bitcoin’s beta value has decreased, making it a key component of modern portfolios. This shift is due to the digital asset’s reduced volatility over time. According to Laffont, Bitcoin’s price swings have diminished, and its performance has become more stable.
Laffont pointed out that Bitcoin dropped 60% in 2022, while the Nasdaq Composite dropped 33%. However, when President Trump introduced tariffs, Bitcoin only fell 5%, whereas the Nasdaq dropped 6%. This disparity suggests that Bitcoin’s maturity is growing, and institutional investors are driving down volatility by adding it to their portfolios.
The hedge fund manager also noted that traders are holding onto Bitcoin for longer periods, indicating a shift from speculative behavior to investment mindset. This change in trader behavior is changing portfolio dynamics, making digital assets more attractive to institutional investors.
Laffont’s experience and insights into the crypto market led him to reconsider his stance on Bitcoin. He now believes that the asset has less volatility than it did years ago and may become even more attractive to future investors. The fact that big names like BlackRock are getting involved in cryptocurrencies further supports this notion, as they introduce crypto ETFs to the investment community.
Laffont’s comments suggest that Bitcoin is becoming a more foundational market, similar to legacy markets. As the beta value of Bitcoin continues to decrease, the crypto market may become even more interesting, making it an attractive asset for institutional investors and individual investors alike.
Source: https://www.tradingview.com/news/zycrypto:7ba3eab0e094b:0-billionaire-hedge-fund-manager-philippe-laffont-claims-bitcoin-has-a-good-beta-value-for-portfolios