Why a Veteran Advisor Sees Bitcoin’s Drop as Proof of Its Maturity
Key Takeaways:
- Ric Edelman interprets current volatility as a sign that institutions now treat Bitcoin like traditional macro assets, not speculative anomalies.
- Growing Fortune 500 participation signals Bitcoin’s transition into a structured corporate asset allocation category.
- Harvard’s sizable Bitcoin ETF position reinforces Edelman’s view that institutional adoption remains structurally intact.
Bitcoin's retreat below $90,000 has not altered Ric Edelman’s bullish outlook.
The veteran financial advisor and founder of the Digital Assets Council of Financial Professionals (DACFP) views the downturn as a strategic buying opportunity rather than a structural reversal.
Edelman Says Bitcoin’s Drop Shows Institutions Now Treat It Like Macro Assets
Edelman argues that Bitcoin’s price drop reflects normalized market behavior.
He observes that comparable drawdowns occur in traditional equity markets, where they are often treated as entry points. “If you liked Bitcoin at $100,000, you should like it even more at lower prices,” Edelman stated.
His stance comes as BTC struggles for upward momentum after hitting several highs earlier this year on the back of clearer U.S. digital-asset policy, strong ETF flows, and rapid institutional participation.
Despite the pullback, major investors—including Harvard University, which recently disclosed a $116 million position in BlackRock’s iShares Bitcoin Trust—continue to increase institutional exposure.
Edelman’s June white paper recommended allocating 10% to conservative portfolios and up to 40% to aggressive ones, citing rising regulatory clarity and broad corporate engagement.
The DACFP founder previously advocated “low single-digit” exposure but says the landscape has changed, with Fortune 500 companies, asset managers, and pensions increasingly active in the sector.
However, market volatility has extended to crypto-linked equities. As Cantor Fitzgerald recently cut Strategy’s 12-month price target to $229, around 59% lower from $560, yet kept its Overweight rating, citing the firm’s $58B Bitcoin treasury.
Edelman adds that Bitcoin’s volatility signals growing maturity, as institutions now treat it like any other macro-driven asset.
States and Corporations Ramp Up Bitcoin Playbooks
As the market pulls back, U.S. states and companies are rethinking how they buy and store Bitcoin.
The state of Texas, for example, has committed $10 million to Bitcoin using a hybrid model. This strategy allocates capital to BlackRock’s spot ETF (IBIT) for immediate exposure while developing the secure infrastructure required for future direct self-custody.
Officials say the ETF provides immediate, regulated exposure while Texas builds the infrastructure needed for long-term, state-held reserves.
Moreover, at the corporate level, Strategy CEO Phong Le outlined the strict conditions under which the company would sell Bitcoin from its treasury.
He said selling would occur only if Strategy’s stock persistently trades at below its modified net asset value (NAV) and it becomes impossible to raise capital at a premium. This scenario would fundamentally break its accumulation strategy.
Jimmy Aki
Drawing from his background in economics, Jimmy has monitored blockchain development for years, firmly believing in its power to democratise finance. Beyond offering commentary on the latest crypto developments, he also spends his time analysing open-source codes of promising projects on GitHub. Jimmy holds Bitcoin and Ethereum.
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