Bitcoin (BTC) was once presented as digital gold – a hedge against monetary instability and market turmoil. However, recent price action tells a different story.
As institutional participation increases, particularly through exchange-traded funds and other classic instruments, Bitcoin is increasingly trading in risky assets. The recent decline in software prices, fueled by renewed uncertainty over the impact of artificial intelligence on the sector, has been reflected in cryptocurrency markets, raising novel questions about Bitcoin’s evolving identity.
These changing dynamics set the tone for Crypto Biz this week. Modern research from Grayscale examines Bitcoin’s growing correlation with growth stocks as one treasury stock Ether (ETH) doubles in value despite multi-billion dollar paper losses. Elsewhere, BlackRock is expanding its tokenization efforts by integrating with Uniswap, and Polymarket is taking its fight over state regulation to federal court.
Grayscale: Bitcoin is traded like a development asset, not digital gold
Modern research from Grayscale suggests that Bitcoin’s store of value narrative has recently taken a backseat, with the digital asset behaving more like a growth stock.
In the report, author Zach Pandl stated that while Grayscale continues to view Bitcoin as a long-term store of value due to its fixed supply and independence from central banks, its short-term trading patterns resemble those of high-growth stocks.
Analysis has shown a sturdy correlation between Bitcoin and software stocks over the past two years. This relationship has become more apparent as software makers face renewed sales pressure amid concerns that artificial intelligence could disrupt parts of the industry.
Against this backdrop, Bitcoin’s recent pullback seems less surprising as its price closely follows movements in the software sector.
BitMine adds 40,613 ETH during market sell-off
Ether treasury company BitMine Immersion Technologies added 40,613 ETH to its holdings during the recent market sell-off, strengthening its long-term investments in Ether even as prices fall and paper losses reach billions of dollars.
The purchase increased BitMine’s total Ether stock to over 4.326 million ETH, worth approximately $8.8 billion at current levels. According to DropsTab data, the company currently has unrealized losses of approximately $8.1 billion on its ETH position, reflecting the significant difference between its cost basis and today’s market price.
Despite investor criticism and pressure on the company’s share price, which has plummeted in recent months, BitMine CEO Tom Lee said the company’s strategy is to track Ether’s long-term trajectory and capitalize on future recoveries. The company’s broader cryptocurrency and cash portfolio is valued at around $10 billion.
BlackRock buys UNI, brings BUIDL to Uniswap
BlackRock is deepening its commitment to decentralized finance by listing its tokenized money market fund on Uniswap, a significant step towards institutional adoption of DeFi.
The asset manager’s USD Institutional Digital Liquidity Fund (BUIDL) is now available on a decentralized exchange, giving whitelisted institutional investors the opportunity to trade tokenized treasury products online. As part of this move, BlackRock is also purchasing Uniswap’s governance token, UNI.
BUIDL is the largest tokenized money market fund with over $2.1 billion in assets. The fund is issued on multiple blockchains, including Ethereum, Solana and Avalanche. In December, it surpassed $100 million in cumulative payouts from U.S. Treasury bond holdings.
Polymarket sues Massachusetts over state regulation of prediction markets
Decentralized Forecast Marketplace Polymarket has filed a federal lawsuit against the state of Massachusetts, challenging the state’s efforts to restrict or close its event-based trading products.
Polymarket’s chief legal officer, Neal Kumar, confirmed the filing on Monday, arguing that outstanding legal issues over jurisdiction should be resolved at the federal level rather than through state-level enforcement agencies. The lawsuit is preemptive in nature and seeks to block any actions by Massachusetts Attorney General Andrea Campbell that Polymarket says could unlawfully interfere with federally regulated markets.
The company argues that the Commodity Futures Trading Commission (CFTC), not individual states, has exclusive authority over event contracts such as those offered on its platform, and that the state’s actions risk fragmenting national markets.
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